Citivest-Angelo, Gordon JV Sets Sights on San Diego Stores
- Jul 08, 2015
The joint venture will operate under AGC SD Retail Holdings, L.L.C. Each of the acquired retail spaces is located within the dominant centers in their areas, with historically high consumer traffic. At the time of sale, the more than 520,000 square-foot portfolio’s average occupancy rate was above 92 percent, 78 percent of which are credit, national or regional tenants.
“The San Diego retail investment market is active and strong,” Bill Barnett, Colliers International’s senior vice president, told Commercial Property Executive. “Citivest with Larry Weese and his group should be commended for pursuing and completing this involved portfolio acquisition.”
The properties include retail space within Pacific Coast Plaza and Town Center North in Oceanside; Palm Promenade and Stonecrest Plaza in San Diego; East County Square and East County Village in El Cajon; and EastLake Terraces, Eastlake Village Center East and Southbay Marketplace in Chula Vista.
“All nine of these retail properties are positioned in strong locations within their submarkets and feature historically high occupancy with either strong anchor tenants or shadow-anchors that drive consumer traffic to the centers,” Larry Weese, Citvest’s president, said in a company statement. “This portfolio will make a strong investment for our company and for our partner, as we will be able to increase the value of this already well-performing portfolio through our leasing and asset management expertise.”
According to Weese, the properties will be further stabilized in the coming months, and the partners will also reposition the largest of the acquired properties, Pacific Coast Plaza, through implementing exterior upgrades.
Located at 2110-2191 Vista Way in the city of Oceanside, Pacific Coast Plaza consists of 312,313 square feet of net rentable space within the center, including current tenants such as Best Buy, Stater Brothers, Bed Bath & Beyond, a Chevron station, Starbucks and Sprint.
A recent report from Marcus and Millichap noted San Diego County’s retail market is emerging as one of the country’s more robust for landlords, as increasing biotech, business services and tourism employment is leading to gains in consumer spending.
The report notes that overall development of new space is limited in San Diego, leading to lower vacancy rates and higher rents, with the average asking rent coming in at $22.79 per square foot.
The new portfolio will be managed by Managing Director of Real Estate Management Services at Voit Real Estate Services Rob Cord. Brokerage was handled by Flocke & Avoyer, San Diego.