Mission Valley Strip Center Fetches $14M
A California-based private investor that focuses on multi-tenant retail investments has paid $14M for an 18k SF strip center in San Diego. The center includes a synergistic mix of food and services tenants, including a freestanding Taco Bell, El Pollo Loco, Pick Up Stix, AT&T and T-Mobile. The sale price represents a 5% cap rate, and the center was 100% occupied at the time of sale.
Built in 1999, this asset is on a 1.21-acre site at 2007-2025 Camino del Este in San Diego's Mission Valley. Approximately 235,000 cars pass by this center daily on the I-8 freeway.
"This transaction was remarkable for its low cap rate and exceptional pricing on a per-square-foot basis considering the two-level nature of the project, all of which speak to its tremendous location," says Newport Beach-based CBRE EVP Philip Voorhees. "For the seller, a private real estate investor, pricing was at the top end of the anticipated range. For the buyer, also a private investor with a long-term investment horizon, the cash-on-cash yield resulting from new financing at historically low rates produced a compelling return in an irreplaceable asset."
Philip and CBRE Newport Beach colleagues, VP Jimmy Slusher, 1st VP Megan Wood, CFO Matt Burson, director Kirk Brummer, SVP Preston Fetrow and VP John Read, as well as SD-based SVP Reg Kobzi, closed this deal for the seller, MVR LLC. LA-based NGKF executive managing director David Lachoff repped the buyer.
