SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Gadsden Growth Properties, Inc., a privately-held real estate corporation, (“Gadsden”), which signed an agreement in November 2018 to merge with FC Global Realty Incorporated (OTC Pink: FCRE; TASE: FCRE “FC Global”), today announced that it has acquired Mission Hills Square, a mixed-use ground up development that includes 158 residential apartment units and 53,900 square feet of retail space for approximately $240 million in a combination of cash and stock.
“This acquisition is indicative of our core strategy of buying strong retail and mixed-use assets in secondary markets with robust economic and socioeconomic tailwinds,” stated John E. Hartman, Chief Executive Officer of Gadsden Growth Properties, Inc. “Fremont is a secondary city to both San Jose and San Francisco and is more affordable by Bay Area standards. We believe this asset significantly increases the Company’s NAV and enhances the overall quality of our portfolio.”
Mission Hills Square is a new mixed-use development located in Fremont, California and slated for completion in October 2019. Situated in the foothills of the San Francisco Bay Area along Highway 680, Mission Hills Square will offer 158 residential apartment units above 53,900 square feet of commercial retail space. Mission Hills future commercial tenants are anticipated to include retail stores, sit-down restaurants, and casual eateries that will serve not only the residents of Mission Hills but also the populations that live in the surrounding areas, as Mission Hills Square will be an easily accessible shopping and dining destination.
As a suburb of the San Francisco Bay Area, Mission Hills Square benefits from a high quality of life, and a well-educated work force boasting median incomes that exceed $100,000 within a 5-mile radius. The project is in proximity to major employers, such as Facebook, Apple and other high-tech companies. In addition, demand for housing, coupled with low supply and high occupancy in the area, supports an inherent demand for both apartments and retail.
About Gadsden
Gadsden Growth Properties, Inc. is a Maryland corporation that was formed on August 11, 2016. Gadsden’s business strategy will focus on the acquisition, development and management of property across retail, medical office and mixed-use investment segments in secondary and tertiary cities in the United States. Gadsden is a privately-held corporation and its securities do not trade on any marketplace. Additional information about Gadsden Growth Properties, Inc. may be found online at www.gadsdenreit.com.
More information regarding the merger and related transactions between FC Global and Gadsden are available in the registration statement that was filed by FC Global on November 9, 2018 and thereafter amended with the latest amendment having been filed on January 30, 2019 (the “Registration Statement”).
Forward-Looking Statements
DISCLOSURE NOTICE: This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, related to Gadsden and its acquisition of the Mission Hills property. All statements other than statements of historical fact are forward-looking statements for purposes of federal and state securities laws. The forward looking statements in this press release include statements regarding the successful completion of the development of Mission Hills Square, the ability of Gadsden to successfully lease up the property and achieve occupancy levels that allow for the property to become profitable, and statements regarding Freemont California being a robust economic city with socioeconomic tailwinds. These forward-looking statements involve uncertainties and risks that could significantly affect the financial or operating results of Gadsden and its newly acquired Mission Hills Square property, including the types of risks described in the Registration Statement.
Gadsden does not assume any obligation to update the forward-looking statements contained in this document as the result of new information or future events or developments.