Roxborough Group’s $130 million purchase of Main Street Cupertino reads, at first glance, like a straightforward retail deal: a San Francisco investment firm buying a well-located shopping center near a major tech campus. GlobeSt’s own headline flags the detail that complicates that read: this isn’t a pure retail asset. It’s a mixed-use property that includes a 180-suite Residence Inn by Marriott, opened in 2017 as part of the same 18.4-acre development, alongside roughly 131,000 square feet of retail space anchored by restaurants and shops steps from Apple’s headquarters.
That combination is exactly what makes this deal harder to price than either component would be alone, and working through why is more useful than the headline number itself.
Start with what’s actually known. An affiliate of the San Francisco-based Roxborough Group acquired the property at 19379 Stevens Creek Boulevard and 19540 Vallco Parkway for $130 million, according to The Real Deal’s reporting on Santa Clara County records. The sale price runs about 4% above the property’s assessed value as of January. The seller was a group led by Bay Area real estate executive Peter Pau. Roxborough secured a $91.4 million acquisition loan from Equitable Life Insurance Company of America, a debt load that covers roughly 70% of the purchase price. Neither GlobeSt nor The Real Deal disclosed how the $130 million splits between the retail and hotel components, and it’s unlikely the buyer or seller will confirm that allocation publicly. What follows is a reconstruction using actual market comparables, not a reported figure…