Decron Properties, one of the largest privately owned real estate firms in California, has acquired Mira Mesa Market West Shopping Center from Stockbridge Capital Group for $99 million.
The 238,747-square-foot shopping center is located in the San Diego submarket of Mira Mesa. The center is anchored by Home Depot, Smart & Final and CVS. Each of the stores rank within the top 10% of their chain, nationwide.
This is the first retail acquisition since 2008 for Decron, which owns and manages approximately 600,000 square feet of additional retail assets and nearly 10,000 multifamily units in California, Washington and Arizona.
“We saw this as an opportunity to add a marquee retail asset to our growing San Diego portfolio,” said David Nagel, CEO. “Only a few years ago it was assumed that brick and mortar retail would be taken over by e-commerce. While there is still strong demand for online shopping, we are seeing a rise in people still wanting the in-store experience and the market/drug anchor line up sets the tone for a daily/weekly visit to the center, helping drive sales for all the tenants in this major regional shopping center.”
The acquisition of the fully leased center included the assumption of the existing financing with New York Life Insurance Company, which allowed for the assumption of a below-market interest rate of 3.5% fixed for the remaining loan term.
Built in 2000, Mira Mesa Market West is located at 10604 Westview Parkway at Mira Mesa Boulevard, the city’s primary east/west arterial. It draws from the 200,000 core residents located within close distance of the shopping center. The center’s tenants have benefitted from nearly 6.9 million visits in the past 12 months, according to Placer.ai.
The 20.22 acre-property includes both pad and inline retail spaces. The multi-parcel make-up of the property provides Decron with the flexibility to sell individual parcels in the future.
The remaining tenants are a mix of high-performing credit tenants that include Dave’s Hot Chicken, Rubio’s Baja Grill, Starbucks, Jersey Mikes, Verizon Wireless, PNC and Lazy Dog restaurant.
Mira Mesa Market West is the second significant real estate acquisition for Decron in the San Diego market in the last six months. In December, the firm acquired Margo at The Society, a 240-unit, luxury multifamily community located just off Hotel Circle in San Diego, CA for $125.5 million. The city’s economy continues to be fueled by an annual job growth rate of 2.3 percent annually, which eclipses the national average of 1.8 percent.
