Kuruzar: Coronado retail is historically tricky. While in the spring, summer, and fall local retailers can count on their local base, a huge portion of their business comes from tourists from all over the US and the world. Because it is across the San Diego Bay and is a destination, up until this point many national retailers have avoided planting their flag. There is now renewed interest in the Island because of today's “experience-driven retail,” and many shop and boutique owners are inquiring about space and opportunity. Rents are also discounted when compared with other San Diego market destinations, which is also attractive.

GlobeSt.com: What makes this submarket of San Diego particularly unique?

Kuruzar: Having lived in San Diego and Los Angeles, I can say that San Diego itself is a unique coastal town. San Diego's sprawl extends primarily north and south along the beaches and the bays, whereas L.A. pushes outward in every possible direction. San Diego also does a great job of maintaining a small-town feel with its unique neighborhoods and laid-back feel. There is something very relaxing about the town itself, and you can feel it upon entry.

GlobeSt.com: What interests investors most about this submarket?

Kuruzar: Coronado is what many investors look at as an “untapped” market, and this is with good reason. The Island is very protective of its old-school, local flavor. It limits development and expansion. Growth is also a major factor. US coastal regions are definitely expanding. Where people go, investment follows.

GlobeSt.com: What else should our readers know about the Coronado Island Assemblage sale?

Kuruzar: While there has been a change in ownership, not much will change. I'm sure some exciting new shops and restaurants will be inquiring about potential space, but the new owners care about the Island as much as the previous family did. Opportunities to acquire or assemble this much property in a beach town are rare, and should really be approached with the goal of giving the community as well as the investors the highest and best use.

CORONADO, CA—Coronado is what many retail investors look at as an “untapped” market, and this is with good reason since the island is very protective of its old-school, local flavor and limits development and expansion, CBRE retail expert Tim Kuruzar tells GlobeSt.com. Kuruzar, along with CBRE's Ken McLeod and Matthew Perlmutter, recently represented both the buyer, local real estate company Kleege Enterprises, and the seller, a private local family, in the sale of Coronado Island Assemblage here for approximately $22 million. The transaction represented a rare opportunity for the buyer to purchase an entire city block on Coronado Island.

Coronado Island Assemblage sits in the center of Coronado Island's premier dining, nightlife and shopping destination on Orange Avenue and near the Hotel del Coronado. The asset consists of 29,665 square feet of retail buildings, situated on 49,948 square feet of land. Major tenants in the center include Mootime Creamery, Leroy's Kitchen and Costa Azul. The assemblage comprises nine parcels that have been assembled over the past 40 years and is currently 100% leased to a mix of seasoned tenants.

We spoke with Kuruzar about the Coronado retail market and what interests investors about it.

GlobeSt.com: How would you characterize the retail market on Coronado?

Kuruzar: Coronado retail is historically tricky. While in the spring, summer, and fall local retailers can count on their local base, a huge portion of their business comes from tourists from all over the US and the world. Because it is across the San Diego Bay and is a destination, up until this point many national retailers have avoided planting their flag. There is now renewed interest in the Island because of today's “experience-driven retail,” and many shop and boutique owners are inquiring about space and opportunity. Rents are also discounted when compared with other San Diego market destinations, which is also attractive.

GlobeSt.com: What makes this submarket of San Diego particularly unique?

Kuruzar: Having lived in San Diego and Los Angeles, I can say that San Diego itself is a unique coastal town. San Diego's sprawl extends primarily north and south along the beaches and the bays, whereas L.A. pushes outward in every possible direction. San Diego also does a great job of maintaining a small-town feel with its unique neighborhoods and laid-back feel. There is something very relaxing about the town itself, and you can feel it upon entry.

GlobeSt.com: What interests investors most about this submarket?

Kuruzar: Coronado is what many investors look at as an “untapped” market, and this is with good reason. The Island is very protective of its old-school, local flavor. It limits development and expansion. Growth is also a major factor. US coastal regions are definitely expanding. Where people go, investment follows.

GlobeSt.com: What else should our readers know about the Coronado Island Assemblage sale?

Kuruzar: While there has been a change in ownership, not much will change. I'm sure some exciting new shops and restaurants will be inquiring about potential space, but the new owners care about the Island as much as the previous family did. Opportunities to acquire or assemble this much property in a beach town are rare, and should really be approached with the goal of giving the community as well as the investors the highest and best use.