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The retail market is hard to pin down these days. In San Diego, we hear about slowing investment activity alongside rising prices, and now—to add to the enigma—the South Bay Autoplex in San Diego’s South Bay has traded hands for a whopping 176% return. A group of private investors operating under an LLC purchased the property in 2015 for $5.95 million and implemented a value-add strategy. The improvements, however, were largely management driven, with only $600,000 total investment into the property itself, including lease transactions. The property is an example that management has become integral to the success of a retail asset, along with location and tenant mix as crucial characteristics. The Heritage Group senior directors Dan McCarthy and Kyle Clark represented the seller in the deal, garnering half a dozen offers on the property, while Kidder MatthewsTom Holland and James Duncan represented the buyer. We sat down with Mark Hoekstra, managing director at the Heritage Group who led the operational changes at the property, to talk about the business plan, marketing process and how this property reinforces the new retail model.

GlobeSt.com: Why was this particular automotive property unique and why did it command so much interest?

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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