A fully-occupied retail asset in the Oceanside submarket of San Diego has been put on the market, with an asking price of $13.2 million, or approximately $309 per square foot. According to the listing from Marcus & Millichap, the 42,646 square-foot retail asset benefits from its location in the Tri-City Plaza as well as from its stable, long term tenants.
The Tri-City Plaza shopping center is located at 3817 Plaza Drive on nearly four acres of land. It was initially built in 1987, but was last renovated in 2017 by a previous owner. According to public records, the property’s current owner is an entity associated with B L Cheng LLC, which purchased the property in 2019 for $11 million.
The property is fully occupied by long term national retailers, TJ Maxx and Goodwill, which anchor the retail plaza. With both tenants, annual net operating income at the property totals $752,148, with both tenants recently signing ten-year lease extensions.
TJ Maxx is long established at the retail plaza, and has been there for more than 15 years. The department store is among one of the largest national clothing retailers, with more than 1,000 stores in the United States.
Goodwill Industries of San Diego County has also maintained a presence in the Tri-City Plaza for a number of years, but recently moved to its current location within the same shopping center in 2018. At the time of the relocation, Goodwill signed a 10-year lease. Goodwill also maintains a national presence, with 1,866 employees across the United States.
“The sales of TJ Maxx at this location have been increasing for 13 straight years until a dip in 2020 due to the pandemic, but are reportedly on track to surpass the 2019 record year in 2021. Goodwill relocated to the TJ Maxx building from with-in the shopping center in 2018 on a new, 10-year lease with 10 percent rent bumps in year five nd during its option period. The staggered lease expirations minimize tenant rollover risk, augmented by strong corporate leases offering investors reliable, passive cash flow over a long-term holding period,” the offering memorandum states.
The retail center is located off State Road 78, which sees approximately 155,000 vehicles per day. In addition, the property is near a variety of other retail assets, including Rite Aid, Dollar Tree, WalMart, Kohl’s, Petsmart, Home Depot and more. MiraCosta College, which serves 17,000 students as well as 1,300 employees is also close by.
“Oceanside is San Diego County’s fastest growing submarket, with more than 636 new single family, town-home and apartment units just constructed less than a mile from the property and numerous other residential and hospitality projects planned or under construction within a 5-mile radius. The area features low retail vacancy, strong demographics, and numerous market growth drivers,” the offering memorandum states.