SAN JOSE — A Mexican supermarket and retail chain will open its first Bay Area store by taking over a long-empty retail building in a high-profile shopping and restaurant complex in San Jose.
Vallarta Supermarkets, founded nearly four decades ago in Southern California by a family that had migrated to the United States from Mexico, has leased a big chunk of space in The Plant shopping center in San Jose.
Empty former Toys ‘R Us and Babies ‘R Us store site in The Plant mixed-use retail and restaurant center at the corner of Curtner Avenue and Monterey Road in San Jose, in a 2019 image capture. (Google Maps)
The grocery and retail store, which offers traditional foods and items native to Mexico, is moving into the former Toys ‘R Us and Babies ‘R Us space on the north side of The Plant, which is at the corner of Curtner Avenue and Monterey Road.
The leasing deal and upcoming redevelopment of the former retail space represent a major early win for Arc Capital Partners and Milan Capital Management, two real estate investment firms that in August paid $95 million to buy The Plant.
Why is this a win? Just months after the purchase, the new owners landed a tenant to fill The Plant’s largest vacancy, a retail space that had been vacant since 2018, when Toys ‘R Us, whose units include Babies ‘R Us, filed for bankruptcy and closed all of its stores.
Vallarta Supermarkets plans to open a grocery and retail store during the second half of 2026, according to Arc Capital and Milan Capital. The supermarket will occupy 65,000 square feet, the property owners said.
“The new Vallarta store will provide a full-service grocery experience, featuring a cocina that offers a diverse selection of traditional favorites from Mexico and Central America,” Arc Capital and Milan Capital stated.
Fresh-cut meats and seafood, a dedicated tortilleria, organic produce and other healthy items are expected to be part of the store’s offerings. The supermarkets also include a juice and aqua frescas bar.
Vallarta Supermarkets will be a key addition to The Plant and bolsters the efforts of Arc Capital and Milan Capital to stage a turnaround of the retail center, the property’s owners stated.
“This partnership marks a significant step forward in our efforts to revitalize the center and enhance the shopping experience for the local community,” said Milan Capital Management executive Chris Nichelson.
JLL broker Jeff Badstubner, Newmark broker Jim Randolph and Westford Law broker Joe Nunez arranged the rental transaction.
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The new supermarket’s location is expected to generate plenty of foot traffic to The Plant, in the view of the owners of the shopping and restaurant center.
“Its strategic placement between Target and Home Depot is expected to attract a significant flow of customers, further boosting the revitalization of The Plant,” Arc Capital and Milan Capital stated.
In 1985, Enrique Gonzalez Sr., who was born in a tiny town in Mexico’s Jalisco province, opened Carniceria Vallarta, a small market in the Los Angeles County city of Van Nuys, according to the Joe Produce online site for agriculture jobs. Gonzalez Sr.’s four brothers, a son and a nephew later joined him.
The family business has grown to roughly 55 supermarkets in California, according to the Vallarta Supermarkets website.
The grocery chain’s closest locations to the Bay Area are in Watsonville and Salinas.
“Vallarta Supermarkets is known for its commitment to offering high-quality authentic options to the Latino community throughout Southern California,” the owners of The Plant said.