Hanley Investment Leads Sale of San Diego Mixed-Use Property
- Jan 31, 2018
Stos Partners of Encinitas has sold a 19,950-square-foot, mixed-use property in the coastal community of Carlsbad, Calif., for $8.1 million, with a capitalization rate of 5.3 percent. The three-story Roosevelt Plaza at Carlsbad Village comprises retail, creative office and residential spaces.
Hanley Investment Group Real Estate Advisors Executive Vice President Eric Wohl and Associate Andrew Cunningham represented the seller, while Vadim Baum of Keller Williams Realty in Huntington Beach, Calif., represented the buyer, La Cienega Property Group.
Located at the intersection of 560 Carlsbad Village Drive and 2975 Roosevelt St., the property is 100 percent leased. Credit tenants in the immediate trade area include Starbucks, Bank of America, 7-Eleven, Ace Hardware, Jack in the Box, US Bank, Smart & Final, Taco Bell/KFC, Denny’s, Carl’s Jr., Union Bank, Verizon and Subway. The property is also half a mile away from the I-5 freeway, benefiting from 178,600 cars per day. There are 110 parking spaces located directly across the street from the property.
Carlsbad Village has a high barrier to entry due to the low vacancy rate and lack of developable land. Within three miles of the property, there are 71,879 people with a household income of more than $85,000. Within the last 12 months, home prices within a one-mile radius of the property were sold at approximately $1 million.
“It is extremely rare to find a recently built coastal property in north San Diego for above a five-percent cap rate and below $500 per square foot. We received multiple offers all hovering near asking price due to the trophy location, newer construction and below-market rents. We closed escrow within 1 percent of our asking price with a Southern California-based 1031 buyer. There is also an approved condominium map in place allowing for multiple exit strategies, including the separate sale of individual units at higher prices per square foot,” said Wohl in prepared remarks.
Hanley Investment Group Real Estate Advisors also recently arranged the sale of a 31,062-square-foot, single-tenant commercial space in Brentwood, Calif.
Image courtesy of Hanley Investment Group Real Estate Advisors