Joint-Venture Partners Citivest and Angelo, Gordon & Co. Acquire Nine-Property Retail Portfolio In San Diego County For $183.25 Million
SAN DIEGO, CA – July 6, 2015 – (RealEstateRama) — AGC SD Retail Holdings, LLC, a joint venture of Newport Beach-based Citivest Commercial Investments, LLC and New York-based Angelo, Gordon & Company, has acquired a nine-property retail portfolio in San Diego for $183.25 million, according to Citivest President Larry Weese.
At the time of sale, the more than 520,000 square-foot portfolio’s average occupancy rate was above 92 percent, 78 percent of which are credit, national or regional tenants.
“All nine of these retail properties are positioned in strong locations within their submarkets and feature historically high occupancy with either strong anchor tenants or shadow-anchors that drive consumer traffic to the centers,” Weese said. “This portfolio will make a strong investment for our company and for our partner, as we will be able to increase the value of this already well-performing portfolio through our leasing and asset management expertise.”
The properties include retail space within Pacific Coast Plaza and Town Center North in Oceanside; Palm Promenade and Stonecrest Plaza in San Diego; East County Square and East County Village in El Cajon; and EastLake Terraces, Eastlake Village Center East and Southbay Marketplace in Chula Vista.
Dwight Belden, Chief Operating Officer for Citivest Commercial Investments, LLC, pointed out, “This is the first time any of these properties had come to market since they were built. Each of the acquired retail spaces is located within the dominant centers in their areas, with historically high consumer traffic. When these factors are coupled with the high barriers to entry in the San Diego market, the potential for growing asset value for these investments is quite strong.”
Weese added that the properties will be further stabilized in the coming months, and that the partners will also reposition the largest of the acquired properties, Pacific Coast Plaza, through implementing exterior upgrades.
“Acquiring nine separate properties at one time took a lot of patience and dedication,” Weese noted. “By working closely with the seller, as well as our joint venture partner, we were able to overcome issues that arose, including the assumption of a CMBS loan, and complete this unique portfolio acquisition.”
The Citivest team included Weese, COO Dwight Belden, CEO Dana Haynes and VP Jeff Peterson in association with Mark Ferraro of TMC America, LLC.
The new portfolio will be managed by Voit Real Estate Services, Managing Director of Real Estate Management Services Rob Cord. Brokerage was handled by Flocke & Avoyer, San Diego.
The Portfolio:
Pacific Coast Plaza is located at 2110-2191 Vista Way in the city of Oceanside. The center was built in 1997 and is shadow-anchored by Walmart. The acquisition includes a total of 312,313 square feet of net rentable space within the center, including current tenants such as Best Buy, Stater Brothers, Bed Bath & Beyond, a Chevron station, Starbucks and Sprint. The center boasts 86 percent of the tenants occupying their spaces for more than 15 years.
Town Center North is located 805, 815, 825, 835 College Boulevard, in the City of Oceanside. The center was developed in 1995, is anchored by Walmart and Vons and is currently 100 percent occupied. The acquisition includes a total of 43,750 square feet of net rentable space within the center, including current tenants GNC, Supercuts, Payless Shoes and Starbucks. Town Center North is the dominant grocery-anchored center in the region and maintains steady customer traffic as it has convenient access to State Route 76. It is located in close proximity to U.S. Marine Base-Camp Pendleton.
Palm Promenade is located at 640, 650, 662 Dennery Road in the City of San Diego. Built in 1995, the center is one of the largest retail centers in San Diego, currently anchored by Walmart, Vons, AMC Theatres- 24 plex and Home Depot. The acquisition includes a total of 32,200 square feet of net rentable space within the center, including current tenants Wells Fargo, Subway, USPS and Payless Shoes. Palm Promenade has been 100 percent leased for the past 14 years and features tremendous freeway visibility and consumer traffic from nearby master planned community Ocean View Hills, as well as the Kaiser Medical Center located across the street.
Stonecrest Plaza is located at 3460, 3462, 6464 Murphy Canyon Road in the City of San Diego. Built in 1995, the center is anchored by Walmart, Fry’s Electronics, Vons, PetSmart and Dollar Tree. The acquisition includes a total of 7,615 square feet of net rentable space within the center, including current tenants Payless Shoes, Radio Shack and Color Nails. As one of the largest centers in the area it is the dominant grocery-anchored center serving the surrounding residential communities. Stonecrest Plaza is currently 100 percent occupied and has been for almost 20 years.
East County Square is located at 13465 Camino Canada in the City of El Cajon. One of the largest grossing centers in San Diego County, the center was built in 1996 and is currently anchored by Walmart and Vons. The acquisition includes a total of 28,500 square feet of net rentable space within the center, including current tenants Payless, Massage Envy, Subway and Supercuts. East County Square has maintained historically strong occupancy rates, due in part to the center’s tremendous visibility from Interstate 8.
East County Village is located at 13687, 13727 Camino Canada, in the City of El Cajon. Built in 1996 as an outparcel to East County Square, the center totals 12,300 square feet of net rentable space and is shadow-anchored by East County Square’s Walmart and Vons.
EastLake Terraces is located at 1320-1480 Eastlake Parkway, in the City of Chula Vista. Built in 2004, the center includes national credit tenants Walmart, Home Depot and Chevron. The acquisition includes a total of 61,102 square feet of net rentable space within the center, including current tenants Walgreens, Chick Fil A, Carl’s Jr, Chase Bank, Starbucks, Rubio’s, Navy Federal Credit Union, Payless Shoes, GameStop and a UPS Store. The center is located at one of the busiest intersections in the EastLake area and is currently 96 percent leased.
Eastlake Village Center East is located at 2305, 2315 Otay Lakes Road, in the City of Chula Vista. Built in 2004, the center is anchored by Kohl’s, and is located within the dominant “Village Center” retail area of EastLake, which includes area centers EastLake Village Marketplace, EastLake Village Center South, Village Walk at EastLake and EastLake Village Center West. The acquisition includes a total of 16,800 square feet of net rentable space within the center, including current tenants Partners Urgent Care, Super Cuts, Krispy Kreme, Wings N’ Things and T-Mobile. The center is currently 92 percent leased.
Southbay Marketplace is located at 57, 67 N. Broadway, in the City of Chula Vista. Built in 1995, Southbay Marketplace is the dominant retail center along the State Route 54, and is anchored by Walmart and Best Buy. The acquisition includes a total of 8,632 square feet of net rentable space inside the Southbay Marketplace center, with current tenants including Verizon, Action Footwear, Sally Beauty Supply and Sunny’s Fashions. Southbay Marketplace has had no vacancy in the past 15 years.
About Citivest Commercial Investments, LLC
The nine property acquisition is a Citivest Commercial Investments, LLC transaction. Citivest Commercial Investments (Citivest) is a related company to Citivest, Inc. The Citivest partners are Dana Haynes, Dwight Belden and Larry Weese.
Headquartered in Newport Beach, California, Citivest is a privately held owner, operator and developer of commercial real estate. The company’s executives, each with over 25 years of retail experience, have an extensive multi-cycle track record in the retail sector with a focus on value-add acquisitions and repositions along with select ground-up development projects.
Citivest is a proven buyer of value-add and opportunistic retail properties across the Western US, with a particular focus on high barrier to entry submarkets in California. The company’s typical value-add asset strategies leverage the firm’s leasing relationships, development capabilities and overall asset management strength. To date, the Principals of Citivest have round-tripped over $2 billion in value-add/opportunistic retail properties.
About TMC America, LLC
TMC America, LLC is a boutique private equity real estate firm founded in 1985 and provides equity capital to real estate developers and operators throughout the western United States. The firm invests in residential, commercial, industrial, retail and land entitlement ventures.
Contact:
Corynne Randel / Jenn Quader
Brower, Miller & Cole
(949) 955-7940
CRandel (at) browermillercole (dot) com
