DEL MAR, CA-Costa Mesa, CA-based private REIT Donahue Schriber has closed escrow on Del Mar Heights Village Center here, adding a third grocery-anchored shopping center to its list of acquisitions in less than three months. The center joins Four Corners Shopping Center in Maple Valley, WA; and Bonita Centre in Bonita, CA, on the firm’s roster.
The 107,846-square-foot Del Mar Heights Village Center, for which the firm was unable to reveal to GlobeSt.com the sale price or seller, is shadow anchored by Vons and CVS Pharmacy and home to 31 local and regional tenants. The center complements Donahue Schriber’s newly renovated, flagship property, Del Mar Highlands Town Center, located a few blocks west.
Industry reports say Four Corners Shopping Center, located 30 miles outside of Seattle, was purchased from Pallis Properties for $41 million in May. The 120,740-square-foot, Safeway-anchored center located on State routes 169 and 516 is one of the fastest-growing market areas in the state of Washington, according to Donahue Schriber. The buyer reveals that this acquisition marks the company’s entry into Washington State and expands its presence in the Pacific Northwest, having owned and operated 667,720-square-foot Keizer Station in Keizer, OR, since 2008.
“The acquisition of Four Corners Shopping Center fits with our core strategy to align with the number-one or -two grocers in a given trade area,” said Donahue Schriber’s CIO David W. Mossman in a prepared statement. “The center’s Safeway is one of the chain’s highest-performing stores.”
Reports also indicate that Bonita Centre was purchased from Bonita Centre LLC for $30.7 million in July. The buyer says the center is anchored by Vons and Rite Aid Pharmacy and that it will commence a substantial remodel of the 98,854-square-foot center that will enhance, yet maintain, its original architectural style.
“We plan to continue our acquisitions program, aggressively targeting quality properties in coastal California and the Pacific Northwest with strong, well-performing tenants and solid demographics,” Mossman said.
The purchase of these properties follows the company’s acquisition earlier in the year of two additional California shopping centers: the Crossings at Paso Robles on the Central Coast and Mandalay Village Marketplace in Port Hueneme, CA, on which GlobeSt.com had previously reported.
Mossman tells GlobeSt.com, "Those retail centers that are grocery anchored with the number-one or -two supermarket in that trade area have demonstrated resiliency in the toughest of times and solid returns in stable conditions.”
Also as GlobeSt.com had previously reported, Larry Casey, president and COO of Donahue Schriber, moderated a panel session titled “Not Your Grandma’s Grocery Store,” at ICSC RECon2012 in May. The panelists—real estate executives for major grocery chains—all said they were in expansion mode and were generally sticking to their current box structure, which is a huge step up from where they were in years past.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
