San Diego-Area Retail Center Commands $27M

After 12 years of ownership, Greenstreet Partners sold Poway Crossings, a 109,455-square-foot community shopping center in Poway, Calif. HFF facilitated the deal on behalf of the seller.
Poway Crossings. Image courtesy of HFF

Sterling Org. acquired Poway Crossings, a 109,455-square-foot community shopping center in the San Diego suburb of Poway, Calif., from Greenstreet Partners, for $27 million. HFF facilitated the deal on behalf of the seller.

“The appeal of the property was the buyer saw an opportunity to add value and lease up the vacant anchor,” Gleb Lvovich, HFF’s managing director, told Commercial Property Executive. “In this marketplace, there is intense demand for value-add retail.”

The LA-Fitness-anchored center was purchased on behalf of Sterling Org.’s most recent institutional value-add fund, Sterling Value Add Partners III LP. “There were multiple offers from both private and institutional investors,” Lvovich said. “There was strong interest because of the potential for upside.”

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The deal marks the company’s eighth purchase in the state in the past four years, and its fifth investment on behalf of the $497 million SVAP III fund.

A strong location

Greenstreet Partners acquired the property in 2007. Originally built in 1979, the shopping center was renovated several times through the years, most recently in 2015.

“San Diego is a target market for a lot of investors and the fundamentals in Poway are strong, with good incomes and a decent employment base,” Lvovich said.

Located at 12622-12654 Poway Road, and situated on 10.1 acres, the property was 80 percent occupied at the time of the deal and includes a tenant roster of Dollar Tree, Massage Envy, Sola Salon Studios, Banfield Pet Hospital, KFC and Big 5 Sporting Goods. The area where Poway Crossings is located sees approximately 32,000 vehicles per day via Poway Road and Silver Lake Drive, and is home to about 90,000 residents.

Joining Lvovich on the deal was HFF’s Director Daniel Tyner. In May, HFF also facilitated the sale of a 92,477-square-foot office property located in the Sorrento Mesa submarket of San Diego.