Not long since being built, a 17,813 square-foot retail asset in San Diego has been placed on the market for $17.6 million, or about $988 per square foot. The listing by Colliers shows that the property, which is part of the Palm Promenade Center, is fully leased to a number of long term tenants.
The property consists of two buildings in the Palm Promenade Center and is located at 762, 764 and 780 Dennery Road. While the for-sale portions of the property were developed in 2020, property records show that the full shopping center is owned by Realty Income Corp., which acquired it in 2019 for $32.3 million.
The retail asset is home to nine tenants, including Jamba Juice, Navy Federal, Epic Wings and UPS. In total, tenants offer a net operating income of $878,519, or $49.32 per square foot.
“The subject offering is located within bustling Palm Promenade Center, the largest Power Center in the city of San Diego with desirable destination retailers such as Home Depot, Walmart and Vons, along with AMC Theatres and Burlington,” the offering memorandum states. “The asset provides an investor long term stability of income, with highly sought after long term leases with an average of eight years remaining, with options,” the offering memorandum states.
Palm Promenade Center is situated at the on/off ramp of Interstate 805 and Palm Avenue, which sees approximately 132,000 vehicles per day. The property is also six miles from the Tijuana International Airport and near a number of residential communities, including Otay Mesa Residential and Ocean View Hills.
With nearby housing communities, the area is home to a large population. According to Colliers, 152,315 people with an average household income of $80,444 live within the three-mile radius surrounding the property.
