Zapolski buys Parkway Plaza downtown

From the Napa Valley Register
By Jennifer Huffman

A development group led by Zapolski Real Estate has bought Kohl’s Parkway Plaza commercial complex, effectively claiming control of most of the north side of First Street from Main to Franklin streets.

The partnership also includes Trademark Property Co., which paired up with Zapolski in 2012 to buy the Napa Center retail development adjacent to the Kohl’s Parkway Plaza.

The acquisition adds 77,000 square feet of retail and restaurant space to Napa Center, bringing the total area now under single control to more than 380,000 square feet.

The only property on the north side of First Street between Main and Franklin that the partnership does not control is a building on Coombs Street owned by Brian Silver, the former bank building housing Ristorante Allegria and the Michael Holcomb properties at First and Main where Starbucks, Vermeil Wines and Lucero Olive Oil company are located.

Andy Beckstoffer owns the former Sushi Mambo building at First and Coombs, but Zapolski and team manage that property.

“Acquiring Kohl’s Parkway Plaza allows us both to enlarge our district and gain critical frontage along key downtown streets, which are essential to achieving our vision for Napa Center and its greater neighborhood,” said Andrew Mazotti, who leads acquisitions for Zapolski Real Estate.

The new acquisition, which is anchored by Kohl’s department store, includes Atlas Social, Don Perico, Jax White Mule Diner and several shops. The sellers are DDR and Blackstone, two of the largest real estate firms in the country. A price for the six-tenant retail center was not provided.

“This expansion is a crucial step in revitalizing the downtown Napa core into a walkable multipurpose urban district and leisure destination for locals and visitors alike,” said Zapolski Real Estate principal Todd Zapolski.

“It’s a natural piece of property that made sense for us to own,” said Andrew Mazotti, who leads acquisitions for Zapolski Real Estate. The plaza is fully leased and “tenants will continue business as usual,” he said.

“The plan is to make it look a little bit nicer and manage it,” Mazotti said. Improvements will be made to common areas, facades and signs. The adjacent plaza area is  owned by the city.

“Todd is a developer with very high standards,” said Craig Smith, executive director at Downtown Napa Association. “He’s the kind of developer we want. He’s not just interested in filling empty spots to collect a rent check. He’s really looking at the big picture and the good of the community.”

“We are very motivated to continue to push downtown Napa forward and having a local group own this is going to help,” said Mazotti. “It’s just another step in the right direction.”

“There are some tremendous advantages that come from a single ownership being able to manage the larger piece in the downtown core,” said Rick Tooker, Napa’s community development director. “It provides them some flexibility to really program that particular site.”

The acquired Kohl’s Parkway Plaza, completed in phases in 1973 and 1983, is located on nearly two acres along Coombs Street and First Street and is 100 percent occupied. Mazotti said he thinks Kohl’s has around 15 years left on its lease.

“By bringing these formerly separate properties under a single management and marketing program, we are one step closer to our vision of a diverse and dominant retail district for the entire region,” said Zapolski.

Zapolski and Trademark are well underway on a project, valued at more than $100 million, to redevelop Napa Center, adding more than 40 shops and restaurants, and build a 183-room luxury Archer hotel. Completion is scheduled for fall 2016.

Only a few original Town Center tenants remain. Exterior and common area improvements have been made, but no new tenants have moved in. The only part of Merrill’s that is left is the front facade, which will be incorporated into the Archer design.