National City is a densely populated and growing city near San Diego, while Adelanto is in a growth area of the Inland Empire, along the heavily traveled US Route 395. In the National City sale, which was noted recently on GlobeSt.com in a report on the investment strategy of an Irvine-based group called Pacific Castle, a joint venture of Pacific Castle and Prudential Real Estate Investors acquired the property from Safco Capital Corp. of Los Angeles.
Bay Plaza is situated on Plaza Boulevard, one of the main retail corridors in the trade area, notes Reza Etedali, CEO and founder of REZA Investment Group. Etedali comments that the transaction "illustrates the continued demand for dense, in-fill shopping centers" that cater to the changing demographic profiles in Southern California." Bay Plaza lies in the middle of a planned redevelopment of Filipino Village and is designed to serve the city's Filipino population, with major tenants including Big Lots, JoAnn's Fabrics (not a part of the deal), Seafood City, IHOP Restaurant and Goldilocks Bakery.
In the Adelanto transaction, managing director Ramez Barsoum of REZA Investment Group reports that a private investor in a 1031 exchange out of an apartment complex bought the center for $480 per sf. Barsoum cites the "long-term growth prospects and steadily improving demographics" of Adelanto because of the new residential developments that have been built in the market in the recent housing boom.
The shopping center is at the corner of US Route 95 and Palmdale Road. It is anchored by a Stater Bros. grocery store and Longs Drugs, neither of which were part of the offering.
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