The Deal Sheet
After a lackluster five-year run for its Fresh & Easy stores, the big British grocery chain Tesco is leaving the US. (Of course, thiswon't be the first time the British beat a retreat.)
The company opened about 200 Fresh & Easy locations in California, Nevada, and Arizona, including a dozen or so in San Diego, since 2007. But the stores, some of which looked like a truck pulled up and started unloading stuff without regard to neighborhood tastes or attractive merchandising,didn't catch on with American shoppers. CBRE SVP Mike Moser tells us the grocer didn't have so many stores that it would be a big detriment to San Diego's retail RE market, andthis "probably will open up some opportunities" for retailers to find locations in areas that are tough to get into. He expects most of the locations, ranging from 10k to 18k SF,to be absorbed pretty quickly.A few locations "that are probably a bit subpar" could end up being taken by dollar-type store operators, he says.
He says the British company may have underestimated the competitive nature of the grocery business in SoCal, and also took some interior locations, "which hurt them a bit." On a positive note, he says the retail market is active andvacancy levels are dropping, but it's "area-specific and product-specific." Mike just finished a 120k SF lease with Living Spaces Furniture in a Sears/Kmart that closed in Mission Valley, and another 100k SF lease, alsoin a former Sears/Kmart store (above), in Kearny Mesa with Zion Market, a Korean-focusedsupermarket.
SALES
Jonathan Segal, FAIA,bought a 30k SF development site consisting of five properties in North Park (3409-3441 30th St) for just under $2.3M. Completion is scheduled this fall on North Parker Lofts, a mixed-use project containing 27 apartments and four retail spaces totaling 6,000 SF, as well as office space for Segal's architecture and development firm. Voit Real Estate Services' Robert Vallera repped the buyer as well as the seller, Investment Property Exchange Services, a qualified intermediary for 30th & Upas LLC.
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Pell Mell Supply,which distributes fasteners to Naval contractors,bought a 10k SF warehouse in National City(1305 Wilson Ave) from Randall Myres and Andria Cioe for $1.1M. Voit Real Estate Services' Arthur Bleier and Nick Price repped the seller, while San Diego Commercial Realty Associates' Dave Dean represented the buyer.
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Colliers International's Vic Gausepohl and Kirk Allison sold a 7,480 SF multi-tenant mixed-use property in Carlsbad(2958 Madison St) for $2.3M. American Real Estate Group's Crystal Lee represented the buyers, restaurant operators who plan to renovate the property fora Love Boat Sushi.
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Insight Bonsall LLC bought a 36kSF multifamily property, 31932 Del Cielo Este in Bonsall, from an LLC for just under $3.7M. Cassidy Turley San Diego's William Creagan represented the buyer, while Hendricks-Berkadia's Steve Huffman repped the seller.
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Murphy 1988 Family Trust bought a 17k SF industrial building,1215 Pacific Oaks Pl in Escondido, from RMC2 Pacific Place for just under $1.9M. Cassidy Turley San Diego's Justin Beattie repped the buyer, while NAI San Diego's Jason Smithson represented the seller.
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A Drake Carver Communities fund affiliate bought the 22-unit Peach Palms and 18-unit Sierra Gardens inEl Cajon(1038 and 1050 Peach Ave) for $4.3M. CBRE's Merrick Matricardi, Eric Cromer, and Jim Neil repped the buyer. The seller, a limited partnership, represented itself. The acquisition was financed with a $3M loan arranged through JP Morgan Chase Bank's Ann Block.
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Mayo Group bought a 3,351 SF office building at Sorrento Meadows, 4125 Sorrento Valley Blvd,for just under $800k. Cassidy Turley San Diego's Phillip Linton repped the seller, an LLC. The Irving Group's Ron Magnaghi represented the buyer.
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GTF Properties bought an 18k SF industrial building, 310 N Johnson Ave in El Cajon, from the Coneen Family Trust for $2.8M or $152/SF. The property boasts a secure, long-term lease, according to Colliers International's Tucker Hohenstein, who repped the buyer along with Mike Erwin, Victor Krebs, and Rob Morgan. NAI San Diego's Mark Silverman and Jason Smithson represented the seller.
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Black Diamond Bay LLC bought a 5,000 SF retail building, 3022-3028 Cedar and 1606 Fern St in San Diego, from GRB Property Group for $780k. Cassidy Turley San Diego's Daniel Fitzgerald, Michael Burton, and Pasquale Ioele repped the seller, while Colliers International's Marc Frederick represented the buyer.
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JBM Properties bought a 38k SF retail building at the Tierra Corners Center in Chula Vista for $8.1M. Cassidy Turley San Diego's Mike Clark and Joe Yetter repped the seller. Hill Properties' Thomas Crudo represented the buyer.
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The Altemus Co bought a 17k SFretail building occupied by Smart and Final, 17030 Foothill Blvd in Fontana, from USA Properties for $5.2M. Cassidy Turley San Diego's Chuck Klein and Kevin Held represented the buyer, while Capital Real Estate Ventures' Randy Rivera repped the seller.
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RA Ramona Investors LP bought a 20k SF retail building occupied by Rite Aid, 1670 Main St in Ramona, from Thomson Foundation Properties for just under $4.5M. Cassidy Turley San Diego's Ed Colson and Michael Campbell repped the buyer. CBRE's Dave Hagglund represented the seller.
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Golden Spring Investment LLC bought a 5,639 SF retail building at 333 University Ave in San Diego from Pathfinder University for $3.3M. Cassidy Turley San Diego's Chuck Klein and Kevin Held repped the seller.
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A 22-unit,two-buildingapartment complex in El Cajon, 909 Sunshine Ave, changed hands for more than $2.3M. The sellerwas (pay attention now) Southwinds Apartments Inc, which was represented by Colliers International's Peter Scepanovic and Corey McHenry, and the buyer was Southwinds Apartments LLC. The property received multiple offers and sold for its asking price.
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Pacific Coast Investments bought two retail buildings totaling 2,485 SF in Carlsbad(305 Carlsbad Village Dr and 3016 Carlsbad Blvd) from Grant Holdings for just under $1.5M. CDC Commercial's Don Zech and Nick Zech repped the seller, while Marcus & Millichap's Mark Thiel and Adam Attia represented the buyer.
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Wood Family Trust bought an eight-unit apartment building in Imperial Beach (1001-1015 Calla Ave) for nearly $1.2M or $149k/unit. Colliers International's Peter Scepanovic and Corey McHenry repped the buyer.Marcus & Millichap's Chris Zorbas represented the seller, Barzal and Scotti Sandpiper LP.
LEASES
Bastyr University leased 12k SF of office space at Sorrento Pines Business Park from Parallel Capital Partners. Cassidy Turley San Diego's Brian Starck and Dave Odmark represented both sides. The pair also repped Parallel in a 6,456 SF office lease at Sorrento Business Complex to Fix Auto USA, a dba for 79411 USA Inc, while colleague Bill Cavanagh represented the tenant.
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PSS of Canyon Crossings leased 5,794 SF of retail space for 10 years at Canyon Crossings, 2560 Canyon Springs Parkway. Cassidy Turley San Diego's Randee Stratton repped the tenant, while Argent Retail Advisors' Terry Bortnick represented the landlord.
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Twin Oaks Animal Hospital leased 1,568 SF of retail space for 10 years at Campus Marketplace, 310 S Twin Oaks Valley Rd in San Marcos. Cassidy Turley San Diego's Andrew Peterson, Bruce Schiff, and Philip Lyons repped landlord Inland American Retail Management. Jones Lang LaSalle's Bryan Cunningham represented the tenant.
BUSINESS
LaSalle Investment Management selectedaJLL capital markets team to market the Coronado Bay Club, a 549-unit waterfront apartment community in Coronado. The 18-building, 14-acre complex (1515 Second St) is the only multifamily property of more than 100 units directly on the water in San Diego County, according to EVP Darcy Miramontes, who is leading the JLL team along with VP Kip Malo, international director Jubeen Vaghefi and managing directors David Young and Joe Leon.
EXECUTIVE NEWS
Adam Smith joined Voit Real Estate Services as a land services adviser. Before this, he ran his own firm representing buyers and sellers in land deals.
