11:30 AM
Newmark Capital Markets announced today it is exclusively marketing for sale Escondido Valley Center, a 92,169-square-foot grocery-anchored neighborhood retail property located in San Diego County’s infill City of Escondido. Completely remodeled in 2017, the center is 100 percent occupied by industry-leading national retail brands including ALDI (grocery anchor), HomeGoods and BevMo!
Newmark Capital Markets Vice Chairman Pete Bethea and Senior Managing Directors Rob Ippolito and Glenn Rudy are marketing the center on behalf of the ownership.
Located on just over 7 acres of land at the premier retail intersection of 9th Avenue and West Valley Parkway, the center was artfully repositioned in 2017 adding Aldi and Home Goods under brand new long term leases, successfully transitioning the center from its former community center status to a best-in-class grocery-anchored asset.
“Escondido Valley Center represents an excellent long-term grocery-anchored investment in a proven North San Diego county submarket,” said Bethea.
Rudy added, “Its infill location in the heart of the area’s primary retail corridor, upgraded tenancy and recent capital investment will attract investors seeking a core grocery-anchored acquisition in one of Southern California’s most coveted areas.”
The property is situated within the West Escondido submarket which not only serves as the dominant retail corridor, but also has distinguished itself as the premier business district in northeast San Diego. The submarket’s healthy blend of destinations include eighteen car dealerships, the recently constructed 740,000-square-foot Palomar Medical Center, and is home to Stone Brewery, the largest brewery in Southern California.
The center is being marketed on a best offer basis with all offers are due April 4, 2018.
Sale investment highlights include the following:
- North San Diego County Retail
San Diego County continues to perform as one of the top retail markets in the entire nation. With very few quality assets available, the opportunity to acquire Escondido Valley Center provides an investor with a stable asset in the highly sought-after north county region. - Grocery- Anchored
Grocery anchored retail continues to outperform all other retail products. ALDI Supermarket delievers a much needed value proposition for area consumers.
- Credit Profile
97% of the offered GLA is occupied by today’s premier retailers providing ease of management and a reliable income stream. - Stability & Tenure
Staples and BevMo! have occupied the center since 2000 and 2008 respectively while new additions ALDI Supermarkets and HomeGoods have committed to new 10-year leases. - Recent Capital Improvements
With new additions ALDI and HomeGoods, Escondido Valley Center is the recipient of over $2.5 million of extensive capital improvements including parking, new roofs, HVAC and new facades thereby limiting near term capital expenditures. - Market Co-Tenancy
West Escondido is home to an impressive list of industry-leading retailers including Target, Home Depot, TJ Maxx, Dick’s Sporting Goods, Albertson’s, Ross Dress for Less, Petco, In-N-Out and more. Overall occupancy for the submarket stands at 98%. - Barriers to Entry
No developable parcels in the immediate or surrounding trade area will result in continued demand for existing centers. - Dense/Affluent Customer Base
Estimated population of 150,177 and average annual household incomes of $73,401 in three miles demonstrate density as well as expendable income. - Daytime/Off-Peak Trade
Escondido Valley Center’s daytime population within two miles of the center is more than 50,000 people bolstered by Palomar Hospital (3,300 employees), Stone Brewing Company and eighteen car dealerships. - Excellent Traffic Generators
With 61,000 cars passing Escondido Valley Center along West Valley Parkway and Auto Parkway, traffic counts at the center are the highest in the city. - Ease of Management
Five tenants in one building offers ease of management. - No Existing Financing
The asset will be delivered free and clear of existing debt.
About Newmark Capital Markets
Newmark Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, our strong foundation makes us one of the most trusted names in commercial real estate. We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.
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