Internet-Resistant Retail Center for Sale in Coastal San Diego

Monday, May 14, 2018

HFF, on behalf of the owner, is marketing for sale Rancho Serra Mesa Center, a 56,395-square-foot neighborhood retail center located in San Diego. Anchored by CVS Pharmacy and Crunch Fitness, the retail property for sale features a diversified roster of daily-needs oriented national tenants and is currently 95.8 percent leased. Rancho Serra Mesa Center offers investors the opportunity to acquire a drug- and fitness-anchored retail center with income security from an internet-resistant income stream on long term leases in an infill Southern California location.

Situated on almost five acres at 3202-3304 Greyling Drive, the retail center for sale is positioned at the intersection of Greyling Drive and Sandrock Road, which is exposed to more than 20,000 cars per day.  There are no competing anchored retail centers within one-mile radius of the center. Additionally, Rancho Serra Mesa Center is centrally located among a dense residential area within the heart of San Diego.

Rancho Serra Mesa Center is located in the thriving Serra Mesa community in the northern part of San Diego. Serra Mesa includes the neighborhoods of Mission Village, Birdland and Abbots Hill, as well as The Village at Serra Mesa in Lincoln Military Housing’s Naval Complex San Diego. Serra Mesa is bounded to the north by Aero Drive and Montgomery Field airport, to the west by the State Road 163, to the east by the Interstate 15 and the Stonecrest community and to the south by Friars Road and Mission Valley. More than 24,000 residents live in a variety of single-family homes, apartments and condominiums in Serra Mesa and enjoy Serra Mesa’s six elementary schools, Taft Middle School and plentiful public parks and open space, including Ruffin Canyon.

Retail Property for Sale Investment Highlights

  • Dense Infill Area with Sustained Population and an Underserved Trade Area:  The immediate trade area surrounding Rancho Serra Mesa Center is extremely dense. More than 417,000 residents live within a five-mile radius. Additionally, the population is expanding; since 2000, the population within a one-mile radius has increased over 18 percent. The retail property for sale is one of the few retail centers that serves the surrounding trade area, providing key services to the dense residential population nearby.
  • Internet-Resistant Tenancy:  The diverse tenant roster is resistant to internet/e-commerce trends by offering a variety of daily needs services and uses, including a drug store, fitness, food, health and beauty.
  • Leasing Velocity and a Demonstrated Tenant Demand:   Since the start of 2016, four tenants (totaling 15 percent of the leased GLA) have executed new leases, demonstrating the strong tenant demand for space in the trade area. Additionally, more than 60 percent of the leased GLA is occupied by nationally recognized tenants that have a combined weighted average lease term of more than seven years, providing investors with income security and future value appreciation.
  • NOI Growth Potential:  There are multiple avenues to increase NOI at Rancho Serra Mesa Center, including lease up of existing vacant suites, mark-to-market rent opportunities upon lease expiration and re-merchandising at higher rent levels.

For more information on this commercial property for sale or other retail properties on the market, please contact Bryan Ley, Justin Kundrak or Daniel Tyner. Click here for our real estate investment sales 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.

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