Retail Center for Sale in California's Central Coast

Thursday, April 6, 2017

Update:  Update: HFF announced the sale of this property on July 11 2017. For a list of commercial real estate properties currently on the market, please click here.

Holliday Fenoglio Fowler, L.P., (HFF) is exclusively marketing for sale Marigold Center, a 174,428-square-foot grocery/drug anchored retail property for sale in San Luis Obispo, California. The property is anchored by Vons, part of the second largest supermarket chain in North America, and CVS Pharmacy, a top-tier drug store, attracting consistent recession-resistant “daily needs” traffic to the center.

Vons has operated at this location for 20 years and generates high sales with a strong health ratio, demonstrating Marigold Center’s dominance in the marketplace. The 93-percent-leased retail center for sale is leased to an assortment of complementary credit tenants, including CVS Pharmacy, Michaels, Dollar Tree, Starbucks, Taco Bell and Carl’s Jr., providing investors a high level of income security and a diverse tenant base.

Marigold Center is strategically located just north of the airport within the most affluent part of San Luis Obispo, a Central Coast community equidistant between Los Angeles and San Francisco that is surrounded by the world renowned wineries of Edna Valley. The commercial property for sale is situated on 17.54 acres at 3900 Broad Street and located in the backyard of California Polytechnic State University (Cal Poly San Luis Obispo), which has more than 21,000 undergraduate students. Additionally, the retail center is nestled in between the Paso Robles wine region and great oceanside towns, such as Pismo Beach and Morro Bay.

Investment Highlights

  • Affluent Trade Area in California’s Central Coast:  Marigold Center is nestled in the most affluent pocket of San Luis Obispo, where household income exceeds $106,000 within a one-mile radius and average home values are more than $625,000, with larger estates surpassing $1 million.
  • Stable Cash Flow with Immediate and Long-Term Upside:  Currently leased to top-tier tenants, the offering provides investors stable cash flow and a secure investment. Additionally, the lease up of the vacant space, in conjunction with the mark-to-market of below market pads and shop rents, will provide investors significant income growth. There is further value creation available through potential façade and general “place-making” improvements, which will continue to increase tenant demand and enhance the property’s visibility in the marketplace.
  • Highly Visible Location with Excellent Accessibility:  Marigold is located in one of the most convenient and well-traveled regions in San Luis Obispo, near the airport and serving as the gateway to Edna Valley, one California’s premier wine growing regions. The retail property is located at the intersection of Tank Farm Road and Broad Street, which, with traffic counts of more than 46,000 vehicles per day, is one of the most trafficked intersections in San Luis Obispo. Accessibility is enhanced via the retail property’s location between two turn signals, both with dedicated left turn lanes into Marigold Center, allowing shoppers to enter the project from the four access points at the property.
  • Unencumbered Asset:  The retail center for sale is being delivered free and clear of existing financing, providing investors the opportunity to take advantage of historically low interest rates and enhanced-leveraged returns.

For more information on Marigold Center or other retail properties for sale in California, please contact Gleb Lvovich, Bryan Ley or Eric Kathrein in HFF’s Orange CountyLos Angeles and San Francisco offices. Click here for our real estate investment sales property search page.

Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker Licensed with the California Department of Real Estate, License Number 01385740.

By Topics