Creating Tenant Synergies in “Passive” Retail Investments

Brummer: “All of the tenants are on triple-net leases with minimal near-term lease expirations and a very established tenant roster with a majority of the tenants operating in the center for more than 10 years, including CVS, which has operated in the center for more than 39 years.”

SAN DIEGO—Investors are able to add value and create synergies in “passive” retail investments by upgrading some of the older, legacy tenants with newer, contemporary tenants and adding more nationally and regionally recognized stores and restaurants, CBRE’s SVP Kirk Brummer tells GlobeSt.com. Brummer is part of EVP Philip Voorhees’ National Retail Partners-West team who, in conjunction with San Diego-based SVP Reg Kobzi, recently completed the sale of Riverdale Shopping Center, a neighborhood retail center Mission Gorge submarket here, for $10.1 million.

The shopping center is anchored by CVS/pharmacy, along with a synergistic mix of food, service and retail co-tenancy. CBRE retail experts Voorhees, Brummer, Jimmy Slusher, Megan Wood, Sean Heitzler and Kobzi represented the seller, a partnership advised by San Diego based commercial real estate investment firm SENTRE, which includes Peckham Properties Inc., Commercial Sites Limited and Wells Fargo Bank, N.A., in its fiduciary capacity as trustee of McKinney Survivor’s Trust.  The buyer, also represented by Kobzi, was San Diego-based Becker Properties LLC, which purchased the property as an addition to its portfolio.