Core Retail Collection in San Diego Trades for $90M

JLL Capital Markets has closed on the $89.8M sale of a retail collection that includes three core, single-tenant net-leased assets located in the 30-acre Gateway to Kearny Mesa’s thriving retail hub in San Diego.

The three national tenants, with retail space totaling more than 194K SF, include a global discount department store, a Food 4 Less outlet and Prime Car Wash/Jiffy Lube.

JLL marketed the assets on behalf of the seller, Clarion Partners and HP Investors, and said a private investor acquired the collection of net-leased assets.

The retail properties were built in 2001 and are positioned on about 19 acres of the 30-acre Gateway at Kearny Mesa’s thriving retail hub, which features dozens of the most popular retailers in the market.

“Long-term investors recognized the unique underlying zoning of the net-lease retail collection and the inherent land value that was being encumbered by the existing leases,” said Geoff Tranchina of JLL’s Retail Capital Markets Investment Sales and Advisory team.

JLL also recently completed the capitalization on one of the highest-profile infill developments in San Diego, closing $203M construction takeout financing for Vive Lux, a Class A, 442-unit multifamily community in the Kearny Mesa submarket of San Diego.

Built in 2022, Vive Lux offers one-, two- and three-bedroom units in an upscale development that offers a resort-sized pool and spa, a 24-hour fitness center, a pool clubroom, a resident wine lounge and a sky deck and ocean lounge.

The development is within proximity of downtown San Diego and San Diego’s thriving biotech hub, as well as San Diego International Airport.

“The debt market aggressively pursued (this) opportunity and held terms through a volatile time in the market, which emphasizes the long-term, irreplaceable nature of this marquis development,” said Aldon Cole, JLL senior managing director, in a statement.

The redevelopment of Kearny Mesa’s Convoy District has transformed an industrial neighborhood into a cultural designation showcasing one of San Diego’s largest Pan-Asian communities.

Planners have designated the Convoy District for a makeover that will make it a more balanced, pedestrian-friendly community with the expected addition of more than 20,000 homes, according to a recently adopted 30-year community plan for the 4,400-acre region.

According to recent report in the San Diego Union-Tribune, what locals call the Convoy Corridor, which follows Convoy Street from Ronson Rd. to Ostrow St., will be refashioned in the style of Little Italy, with residential towers commingling with ground-floor shops, plazas and paseos to create a vibrant atmosphere.