Save Mart sells/leases back 7 Sacramento area properties

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storewanderer
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Save Mart sells/leases back 7 Sacramento area properties

Post by storewanderer »

https://www.bizjournals.com/sacramento/ ... -firm.html

This time there was a list of the properties sold and how much they sold for:

3291 Truxel Road in Sacramento, (FoodMaxx- former Albertsons), for $10.3 million.
7960 Gerber Road in Sacramento, (former Albertsons), for $5.52 million.
9160 Elk Grove-Florin Road in Elk Grove, (former Albertsons), for $9.87 million.
1059 C St. in Galt, a Save Mart, (original Save Mart) for $6.629 million.
386 Elm Ave. in Auburn, a Save Mart, (former Albertsons) for $16.06 million.
9999 Niblick Drive in Roseville, distribution center- former Albertsons, for $53.52 million.
5060 Foothills Blvd. in Roseville, (former Albertsons), for $6.09 million.

They should definitely have enough money now to remodel the rest of their stores... funny to see the difference between what Truxel went for and what Gerber went for. Both lousy neighborhoods, both 1980's buildings, and Gerber is a larger building. Both compete with FoodsCo. Roseville also seems like it went rather cheaply but I guess when you run a low volume store even in a late 90's building in a well occupied shopping center in a hot area, it isn't worth much. Actually quite surprised how much Truxel sold for... that Food Maxx must be doing well. Surprised they did not do a Food Maxx conversion to Gerber, get the volume up, and probably could have gotten more money for that building.

Also quite interesting they sold off the distribution center and will lease that back. Hopefully they made a profit on these real estate sales vs. what they paid the old Albertsons LLC for these assets over a decade ago.
klkla
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Re: Save Mart sells/leases back 7 Sacramento area properties

Post by klkla »

The six stores are all in shopping centers. Did the sale include the shopping centers or just the physical stores? If it includes the shopping centers the sale prices are O.K. but not great.

That distribution center seems really small and oddly designed. I'm curious how it is configured. It appears only to only have about 30 bays for the main dry goods area and then another 40 or so in the finger which I assume is for produce.

The only comparison I would have for a small chain distribution center is the old Hughes Market DC in Irwindale which was built in the mid 90's to support 50 stores. It has about 70 bays for dry goods and about 30 for produce (interesting note is that the produce part is now occupied by Charlie's Produce which entered the SoCal market to support Haggen's ill fated expansion. They have managed to expand their business after Haggen and supply a lot of small chains and independents today.)

Here are Google satellite images for both:

SaveMart:
https://www.google.com/maps/place/9999+ ... 21.3097739

Hughes:
https://www.google.com/maps/place/Irwin ... 17.9353413
storewanderer
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Re: Save Mart sells/leases back 7 Sacramento area properties

Post by storewanderer »

I can't tell for CA but for the NV locations it is only the stores and not the surrounding shopping centers.

The Albertsons Roseville Distro Center was built for about 75 stores back in the late 80's or early 90's (it was to supply the NorCal/Central California Albertsons, which weren't many, and the Reno stores). It was built as a full distribution for dry grocery/frozen/perishable at that time (drug was supplied from the I think now defunct Sundries Center in Utah). Initially, the larger part of the warehouse was for dry goods and the shallow parts were for refrigerated/frozen. That configuration has since changed.

The Albertsons Salt Lake City distribution center was built with a similar configuration but much larger (it is still open).

NorCal Albertsons in 2006 had two distro centers, Roseville which was for refrigerated/frozen, and Vacaville which was 100% dry goods. Save Mart closed/sold Vacaville a few years ago and at that point shifted the distribution of dry goods and possibly frozen to a Save Mart facility in the central valley (Super Store Industries) but kept Roseville for refrigerated, at least for the former Albertsons Stores. The original Save Mart Stores mostly get perishables from some other SSI facility.
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Re: Save Mart sells/leases back 7 Sacramento area properties

Post by klkla »

storewanderer wrote: December 26th, 2020, 7:09 pmThe Albertsons Roseville Distro Center was built for about 75 stores back in the late 80's or early 90's (it was to supply the NorCal/Central California Albertsons, which weren't many, and the Reno stores). It was built as a full distribution for dry grocery/frozen/perishable at that time (drug was supplied from the I think now defunct Sundries Center in Utah). Initially, the larger part of the warehouse was for dry goods and the shallow parts were for refrigerated/frozen. That configuration has since changed.
OK that makes sense. Thx
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