Coronado Plaza Brings $17M

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CORONADO ISLAND, CA-G&L Realty Corp., the Beverly Hills-based REIT that specializes in healthcare properties, has shed itself of a non-core asset, and in the process, set a San Diego County record for highest/sf sale on properties trading for more than $10 million. In the deal, G&L Realty dba G&L Coronado LLC sold Coronado Plaza for more than $17.3 million and has plans to roll the funds toward medical office investments.The 41,700-sf mixed-use property fetched $416/sf, a record for its property type in San Diego County, and substantially more than the going rate of around $350/sf, according to Richard Walter, president of Irvine-based Faris Lee Investments. Walter, along with Jeff Conover, also of Faris Lee, represented both G&L and the buyer, Santa Barbara-based SCP Coronado LLC.”This transaction was extremely complex because it involved a number of financing challenges,” Walter says. “In advance of the sale, we arranged for defeasance on the existing debt and adjusted the price of the property,” which added $1.7 million to the price for the seller, he adds.Located adjacent to the four-star Hotel Del Coronado, the three-story, mixed-use property was developed in 1975 by G&L, who has planned a rehab on the site for the past several years. G&L cleared the entitlement process before selling, which alters the current “mall-type entrance to a plan that opens up some of the shops to the main street and puts up new facades,” Walter tells Globest.com.The property is 95% occupied and counts 32,766 sf of retail and restaurant space and 8,934 sf of executive office space on the third floor. Walter says the vacant space is part of the upcoming rehab and adds that the executive suite could be filled by a high-profile tenant. Tenants at the property include Marie Callendar’s, Mandarin Café, Wendy’s, Domino’s Pizza, Subway and Coldwell Banker. Coronado Plaza also offers subterranean parking, which will help house some of the estimated two million annual visitors to the island.