Decron Properties has acquired Mira Mesa Market West Procuring Heart, a 238,747-square-foot retail middle in San Diego.
Stockbridge Capital Group bought the absolutely leased asset for $99 million. Moreover, the acquisition of the property included the belief of the present financing with New York Life Insurance coverage Co., which has a below-market rate of interest of three.5 % fastened for the remaining mortgage time period.
The acquisition represents the primary retail acquisition for Decron since 2008. The corporate operates in markets throughout California, Arizona and Washington, whereas its retail portfolio encompasses 600,000 sq. ft. Regardless of some disruption within the retail trade, together with financial downturns and the expansion of e-commerce, buyers are adapting to the brand new retail panorama.
Again in 2016, Stockbridge acquired the asset from DSB Properties Inc. in a $229 million deal, with the assistance of a $200 million acquisition mortgage offered by KeyBank. The mortgage was then shortly refinanced by two loans totaling $103 million funded by New York Life Insurance coverage Co., in accordance with San Diego County data.
A lukewarm San Diego retail market
Positioned at 10604 Westview Parkway, the 20-acre property is close to Interstate 15 and a few 16 miles north of downtown San Diego. Courting again to 2000, the buying middle is anchored by House Depot, Sensible & Last and CVS. Different tenants embody Dave’s Sizzling Hen, Starbucks, Rubio’s Baja Grill, Jersey Mikes, PNC, Verizon Wi-fi and Lazy Canine restaurant.
Within the first quarter of this yr, the emptiness charge within the San Diego retail market was up 26 foundation factors for the reason that earlier quarter, hitting 4.1 %, in accordance with a Colliers report. The common sale worth for retail area and buying facilities decreased to $335 per sq. foot, however consultants predict that offers will choose up within the second half of this yr.
