San Diego-Area Grocery-Anchored Center Trades for $42M
- Jul 13, 2017
HFF has closed the sale of Gateway Marketplace, a 127,861-square-foot shopping center in Chula Vista, Calif. The company marketed the San Diego County property on behalf of the seller, a partnership between Brixton Capital and ALTO Real Estate Funds. An affiliate of American Assets Trust Inc. purchased the asset free and clear of existing debt for $42 million.
Located on nearly 10 acres at 40 N. 4th Ave., the property is anchored by Smart & Final and Aldi. The shopping center was completed in 1997 and had a recent $9.3 million makeover orchestrated by SCA Architecture. The asset is 98.7 percent leased to tenants including Party City, Hobby Lobby, Mattress Firm, Little Caesars and AT&T.
The property is situated between interstates 5 and 805, seven miles south of San Diego and less than half a mile from the ocean. The asset is in an area with a population of 435,000 within a five-mile radius, with an average household income of $65,500. The center is located at the northwest corner of North 4th Avenue and C Street, which have combined traffic counts of 43,400 vehicles per day. Additionally, the center has direct east and westbound access to the South Bay Freeway, which is trafficked by approximately 146,500 vehicles per day.
“We are excited to have closed one of the first Aldi-anchored shopping center sales in Southern California and look forward to working on many more as they continue their West Coast rollout,” said HFF Managing Director Gleb Lvovich in prepared remarks. “Aldi’s strategy of opening in densely populated, urban trade areas lines up well with investor demand, which is focused on placing capital in urban markets.”
Lvovich and HFF Managing Director Bryan Ley led the HFF retail investment sales team representing the seller. Mike Moser at Retail Insite assisted as a local market contact.
Image courtesy of HFF