SAN DIEGO-Terramar Retail Centers LLC has acquired Encinitas Village, a 183,675-square-foot neighborhood retail center in Encinitas, CA. Although Terramar would not disclose the purchase price, but GlobeSt.com learns from an unidentified source that it was just north of $78.6 million.
The seller was a private investment company that owned the center for more than 20 years. The center was upgraded in 2008 with new landscaping, improved circulation and patio seating areas. The seller was represented by Pete Bethea of Cushman & Wakefield in San Diego.
The center, located in the El Camino Real retail corridor at the intersection of El Camino Real and Encinitas Boulevard, is anchored by a 43,400-square-foot Ralphs Grocery, a 25,473-square-foot CVS Drug, and an 11,000-square-foot Trader Joe’s. “Encinitas Village is a high-quality center in one of the best retail submarkets in San Diego County, with a solid track record of sales growth, high occupancy and stability through this recent recession,” says Matthew Smith, Terramar’s vice president of acquisitions. “It has a quality tenant mix of anchor stores, specialty shops, restaurants and service tenants, and is a great fit with our long-term investment strategy.”
Terramar is actively expanding its portfolio through acquisitions, new development and redevelopments of retail centers in its core markets in the western US. “We are active in the marketplace and our strategy is to pursue properties that will provide high-quality, stable cash flow through multiple economic cycles,” Smith says. “We are very well capitalized and can close on transactions without financing, which is beneficial in this economic environment.”
Terramar has acquired, managed and leased more than 6.5 million square feet in its 15-year history. The company currently owns and operates 21 neighborhood, community, specialty and power centers. Terramar’s operating and development portfolio includes more than 3.7 million square feet of retail area throughout the western US.
As recently reported in the September issue of sister publication, Real Estate Forum, despite a few recent big shopping center deals and positive absorption in San Diego retail, the market still faces its challenges, according to Voit Real Estate Services’ SVP Mark Caston. “We continue to see small local tenants struggle, while national tenants are coming back to the market and looking for ‘quality’ locations and reasonable rental terms,” he explains.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
