Throughout San Diego County, investor interest in retail assets is trending upward, with reports showing higher sales prices and increased tenant demand. Taking advantage of the current marketplace, Vineyard Square – a 22,240 square-foot shopping center in Escondido – has recently been placed on the market for nearly double what it was last sold for. The property, which has been listed by Kidder Mathews, is being offered at $10.82 million, or approximately $486 per square foot.
Located at 1511-1529 E. Valley Parkway, the property was built in 2008 and last sold in 2009 to an entity associated with Escondido 24 LLC for $5.95 million, or $267 per square foot, public records show.
Vineyard Square is home to a large mix of tenants, offering a current net operating income of $649,423. Current tenants at the property include Albertsons, Smoker’s Heaven, Digicom Wireless, Starbucks, Super Cuts, Top Ten Nails, Verizon and Popeyes, among others.
According to the listing, the property also contains a 14,800 square-foot vacant unit, which was previously occupied by 24-Hour Fitness. Current ownership is willing to provide an 18-month rent guarantee at $1.75 per square foot for the vacant space. With the rent guarantee just below current market rent, a future investor would be able to retenant the space with potential rental upside.
The property is located at the corner of E. Valley Parkway and Rose Street, both of which see a combined 40,800 vehicles per day. The area is home to a large number of retail tenants, including Aldi, Walmart, Escondido Village, Walgreens and more.
In general, the Greater San Diego area’s retail market has been performing well over the last several quarters. According to the most recent first quarter retail market report from Kidder Mathews, San Diego has seen retail vacancy rates decrease from 5.3 percent to 4.7 percent year-over-year. During the first quarter of 2022, sales prices for retail properties also have increased by just over three percent year-over-year, from $387.07 per square foot in 2021 to $399.24 per square foot in 2022.
