Capstone Advisors Buys Two Retail Properties

POWAY, CA—Capstone Advisors, a real estate investment, development and advisory firm headquartered in Carlsbad has acquired two retail centers in Poway. The centers were acquired in two separate transactions totaling approximately $11 million.

Capstone acquired Sabre Springs Plaza, a 15,038-square-foot retail center located at the intersection of Poway Road and Springbrook Drive in the Sabre Springs community of San Diego. The center was purchased for $4.55 million and is a core-plus class asset anchored by 7-Eleven. 

“This was a unique opportunity to capitalize on our in-depth knowledge of the area to source a transaction that many others had overlooked,” said Alex Zikakis, president and CEO of Capstone Advisors. “The property has operational and market inefficiencies that are easily corrected, which will allow us to significantly improve the performance of the center.”

Capstone Advisors intends to employ a capital improvement plan focused on landscaping, parking lot and lighting maintenance, as well as a complete exterior paint update.

Pat Toomey and Kyle Mathews of Colliers International represented the seller, who was not disclosed.  Financing was provided by La Jolla-based Silvergate Bank.

Capstone also acquired Poway Valley Center, a 25,754-square-foot retail shopping center located at the corner of Poway Road and Community Road. Purchased for $6.25 million, the property's signage on Poway Road and its location within the sub-market creates an attractive environment for merchants, restaurateurs and convenience-oriented businesses seeking a prominent Poway retail location while avoiding traditionally high occupancy costs of the immediately adjacent anchored shopping centers.

 “Utilizing our long-standing relationships with the local brokerage community, we sourced Poway Valley Center in an off-market transaction that highlights our ongoing acquisition strategy of targeting well located retail shopping centers on the West Coast” said Jon Mendis, director of acquisitions for Capston.

Capstone Advisors plans to enhance the property's appeal by implementing renovations to upgrade the store fronts, improve traffic flow and expand the landscape, as well as improve the parking lot, lighting and exterior paint.

John Jennings and Rob Ippolito of Cushman & Wakefield represented both Capstone and the seller, who was not disclosed, in the transaction.

“These two assets are great complements to our existing portfolio and continues our focus on acquiring core-plus and value-add retail properties throughout Southern California and select western states,” said Zikakis.  “Leveraging our strong capital resources, talented team and proven track record, we have very aggressive acquisition goals for the next several years.”

Capstone Advisors is a diversified real estate investment, development and advisory firm with a proven track record of having acquired close to five million square feet of commercial properties throughout the US across multiple real estate cycles and product types.