Shops At Foster Square | Core Bay Area Retail Food / Service Investment Opportunity

Highlights:

• Core Bay Area Convenience Food Focused Center | Anchored By Starbucks
• High Performing Asian Food Concepts Tenant Mix
• Extremely Affluent Trade Area | AHHI Of $264,737 Within A 1 Mile Radius
• This Center Contains A Variety Of Successful Asian Food Concepts: Happy Lemon, Toast In Town, Sizzling Lunch, Mumu Hot Pot, Chuan Chim Thai Cuisine, Dumpling Moments
• Anchored By Top Tier Performing USPS | Top 2% In Visits In The U.S.
• Strong CAGR (4.18%) W/ Annual Rent Increases From Majority Of Tenants
• Highly Attractive 7.00% Cap Rate And Cash-on-Cash Return For A Bay Area Core Location
• Serves Multiple High-density Residential Developments Within A High Barrier To Entry Market
• Highest Per Capita Daytime Population In Bay Area| IBM, Gilead, Visa, Oracle, Illumina
• Primary Focus Of Foster City Is Adjoining Foster Square W/ $61m New Community Center
• There Are Over 22,000 Employees Within 1 Mile Radius

Description:

Faris Lee Investments is pleased to present the rare opportunity to acquire Shops at Foster Square, a premier, Starbucks-anchored food / service retail center located in a core Bay Area market. Impeccably constructed in 2017, this pride-of-ownership asset features ideal, highly functional shop sizes optimized for long-term tenant retention and ease of management.

The center boasts an exceptional merchandising mix of daily-needs service uses and highly successful Asian culinary concepts, including Happy Lemon, Toast In Town, Sizzling Lunch, Mumu Hot Pot, Chuan Chim Thai Cuisine, and Dumpling Moments. Reflecting the strong local demand for quick-service food, tenants generate robust sales ranging from $500 to $800 per square foot. These operators are heavily invested in their buildouts, securing long-term tenant stability, while embedded annual rent increases across most leases provide built-in NOI growth and a strong hedge against inflation. Offered at an attractive 7.00% cap rate, the investment delivers positive leverage and above-market cash returns compared to similar stabilized Bay Area assets.

The center occupies a dominant position; Foster Square serves as the focal point of the city’s active “Foster Village” concept alongside a newly opened $61 million Community Center, City Hall, and public lagoon. The asset is embedded within a high-density, high-barrier-to-entry market, directly serving the 421 residential units at Foster Square plus over 1,400 multi-family units across five nearby multi-story developments. With no new retail construction in Foster City since 2021 and none currently planned, the center benefits from strong competitive insulation. Operationally, the property offers a strategic 8.73:1 surface parking ratio that provides optimal customer convenience for high-volume food uses, while an active property association handles day-to-day common area maintenance to ensure minimal landlord obligations.

Situated in one of Northern California’s most affluent trade areas, the property benefits from a very high average household income of $264,737 and a highly educated demographic base, with nearly 80% of residents holding a bachelor’s degree. The trade area features the highest per-capita daytime population in the Bay Area, supported by nearly 90,000 employees within a 3-mile radius and corporate neighbors including Visa, Gilead Sciences, IBM, Oracle, and Illumina. This captive, high-earning workforce, combined with high-density residential surroundings and a prime core location, ensures sustained customer traffic and predictable, long-term cash flow for an investor.


Starbucks-anchored retail food and service center in Foster City’s Foster Village area, serving nearby residential and corporate demand

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