Who’s Buying SD’s Trophy Retail Assets—and Why?

Wohl: “Tenants are willing to pay now more than ever for a building with excellent visibility, parking and access in high-end coastal communities.”

SAN DIEGO—The full spectrum of buyers, from private investors to large REITs, is eyeing San Diego’s trophy retail assets and is willing to sacrifice yield going in because they’re banking on long-term appreciation and extremely high barriers to entry, Hanley Investment Group’s EVP Eric Wohl tells GlobeSt.com. Wohl recently represented the seller, a private investment company based in Encinitas, CA, and the buyer, a real estate investment fund based in Canada, in the sale of the Gateway @ Cedros, a rare trophy coastal retail center in Solana Beach, CA, for $6.7 million, representing $837 per square foot. We spoke exclusively with Wohl about trophy retail assets in this market, who’s buying them and why.

GlobeSt.com: Who is investing in trophy retail assets in San Diego?