Five Retail Transactions Totaling $103.2MM Recorded in San Diego During Third Quarter

San Diego, CBRE, Mission Valley, Mazda, Carvana, Peter & Ladene Aardema Family, Poway, Kohl’s, Mission Douglas Plaza, Oceanside, Red Rock Center, Rancho Santa Fe, San Marcos, Plaza de Acacias

By Catherine Sweeney 

San Diego’s retail market continues to be of interest to investors, with five transactions taking place over the third quarter of the year. According to a San Diego third quarter market report from CBRE, five major sales totaling 327,890 square feet sold for a total of $103.2 million.

In one transaction, Carvana purchased a former John Hine Mazda dealership in Mission Valley. Located at 1545-1551 Camino del Rio, the property totals 68,505 square feet and was sold for $21.7 million, or approximately  $316.6 per square foot. 

The largest transaction, however, was in Poway, according to CBRE. The property is located at 12880 Gregg Court and was purchased by Peter & Ladene Aardema Family Trust for $27.5 million, or approximately $256.2 per square foot. The property is 88,248 square feet and occupied by Kohl’s.

Other transactions in the third quarter include the 88,923 square-foot Mission Douglas Plaza in Oceanside, which was purchased by Farhad Isaac Nedjat-Haiem for $19.8 million, or $196 per square foot; the 74,008 square-foot Red Rock Center in San Marcos, which was acquired by Ronen Armory for $18.7 million, or $252 per square foot; and the 8,260 square-foot Plaza De Acacias in Rancho Santa Fe, which was purchased by Gregory Young for $15.5 million, or approximately $1,879 per square foot. 

According to the report by CBRE, sales in San Diego’s retail market are showing proof of a strong rebound after many challenges caused by the COVID-19 pandemic. The report showed positive net absorption in the region reached 32,976 square feet, marking the second consecutive quarter of positive net absorption. At the same time, leasing activity reached 509,907 square feet in the third quarter of 2021.

Overall, retail sales are up 15 percent over the past year, according to CBRE. After 11 major retailers filed for bankruptcy in July and August of 2020,  the region is making a turnaround with no bankruptcies filed during the third quarter of 2021. Additionally, more than 15 retail deals, which includes IPO, company sales and other transactions took place this quarter.