Havens: “After years of slow growth, the city is evolving and becoming known as a culturally vibrant and entertaining city along the coast.”
OCEANSIDE, CA—Oceanside's economy is moving upward as businesses and residents are moving into the area, and the trend is expected to continue into as more residential and commercial projects come to market, Lee & Associates broker Blair Havens tells GlobeSt.com. We spoke with Havens exclusively about the Oceanside market, what's driving the market and recent investment and development activity there.
GlobeSt.com: How have investors been viewing Oceanside this year?
Havens: During the first half of 2016, the coastal Oceanside market continued the momentum it gained in 2015. Investors and developers, betting on the evolving Oceanside market, purchased properties at record highs, and long-time property owners readily cashed in on their assets. Several prominent coastal Oceanside properties traded hands, including 1555 South Coast Hwy. and 1702 Mission Ave. The first, 1555 South Coast Hwy., a 2.54-acre former industrial and auto-repair site, traded for $5.8 million ($52 per square foot) in a sale completed by our firm. The newly constructed Starbucks building located at 1702 Mission Ave traded for $2.6 million with a 4% cap rate.
Several new retail businesses came to market in 2016, most notably In and Out (936 N. Coast Hwy.), Starbucks (1702 Mission Ave.), Coastal Coffee Connection (401 North Coast Hwy.) and the Loose Leaf Tea Bar (408 Mission Ave). Other prominent business openings included the expansion of the Privateer Marketplace and Wine (1704 S. Coast Hwy.), North Pine Brewing (326 N. Horne St.) and Vital Climbing Gym (525 S. Coast Hwy.), which includes 8,100 square feet of climbing walls of all sizes and skill levels.
GlobeSt.com: What have developers been up to in this market?
Havens: From a development perspective, the downtown Oceanside pier area has undergone major renovations. Several new restaurants and hotels have been added, including Hello Betty Fish House and the 149-room Marriott Springhill Suites, both of which are now open for business. Just steps from the pier, the North Beach Promenade is currently under construction. The Promenade is a monumental project that will contain 132 residential spaces and units, 9,400 square feet of retail space, and a 438-space parking structure. The project is located at the Southwest side of Cleveland St. between Civic Center Dr. and Pier View Way. Directly behind the North Beach Promenade, construction continues on another mixed-use project built by the GF Properties Group. The project will consist of 66 apartments, 9,500 square feet of retail and 164 underground parking spaces. In addition, many other projects in Oceanside's coastal market are underway in 2016.
GlobeSt.com: What's driving the market?
Havens: Although, Oceanside has always been a coveted location, it has trailed behind its surrounding markets in terms of development. Over the past three years, the recovery of the economy and real estate market have driven investors and developers—can we say “venture capitalists?”—to the coast looking for opportunity. The combination of low interest rates, favorable development opportunity and high demand for housing have driven prices upward. Oceanside's economy is moving upward as businesses and residents are moving into the area. The trend is expected to continue into the second half of 2016, and we will see more residential and commercial projects come to market.
GlobeSt.com: What else should our readers know about the Oceanside real estate market?
Havens: It is an exciting time in Oceanside. After years of slow growth, the city is evolving and becoming known as a culturally vibrant and entertaining city along the coast. Residents and property owners will enjoy new businesses from the brewing, restaurant and recreation industries. New developments will continue to add life and energy to the new, thriving Oceanside, as long as the markets and economic conditions remain strong.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
