RAF Pacifica isn't the only firm that has set its sights on Solana Beach. Stay tuned to GlobeSt.com for an exclusive interview with CBRE's Dave Hagglund on the entry of national home-furnishings and design retailer West Elm into the Solana Beach market on the same street as the new project. Also, a fund manager based in Chicago recently acquired BeachWalk, a 54,973-square-foot retail center along Highway 101 here, which is within walking distance to the Cedros Design District and Amtrak Train Station and less than a mile from Del Mar Fairgrounds, the site of the Del Mar Racetrack. The $33.25-million purchase was completed by CBRE's National Retail Partners—West team, along with Reg Kobzi in the firm's San Diego office. CBRE's retail-investment experts John Read, Philip Voorhees, Jimmy Slusher and Kirk Brummer, as well as Kobzi, also represented the seller, a partnership managed by the Muller Co.

We spoke with Robinson about his firm's entry into mixed-use development as well as the revitalization of this area of Solana Beach.

GlobeSt.com: What has spurred your firm's interest in mixed-use development?

Robinson: This will be our first true mixed-use project of retail, residential and office. I've always liked the South Cedros area—we had a building on the corner that we owned for almost nine years and sold last year, and I like the walkability and its proximity to the train station. For this project, we wanted to diversify our long-term holdings in San Diego, and we want to own more of these trophy mixed-use projects.

GlobeSt.com: There seems to be a lot of movement in this part of Solana Beach. What do you believe is causing it?

Robinson: Ownership changeover. Brixton came in and bought the old antique warehouse building, which is getting an exterior upgrade and West Elm as a tenant. Some owners who were a little more complacent just because their buildings would lease out at really good lease rates are beginning to sell. We bought Cedros Gardens from someone who bought the property in the '50s or '60s. It's finally changing hands. As people get older, they tend to want to go into something that's lower maintenance and less work, so they're beginning to sell. So, we're getting new blood and new owners on the street who are willing to put more money into their buildings and bring them up to today's standards, driving new and better tenants.

GlobeSt.com: What place do you believe mixed-use development has in the San Diego market?

Robinson: I think that it works. It worked in Downtown San Diego, but we're also seeing it really work in the beach communities for people who are moving out of Rancho Santa Fe and don't want these big homes anymore. They're consolidating their lifestyle and retiring—it's not just Millennials. Coastal communities are primed for mixed-use projects. We would love to do another one like this in Carlsbad or Encinitas or Leucadia—it would work extremely well.

GlobeSt.com: What else should our readers know about this particular project?

Robinson: I think Solana Beach is great community, but it's lacking in fine dining. It needs the right restaurant that fits within the community. We're based in Encinitas, so this is a long-term hold for us; we're very vested to make the right decision.

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SOLANA BEACH, CA—With RAF Pacifica Group's acquisition of the 40,000-square-foot former Cedros Gardens land parcel here and new retailers entering South Cedros St., the area is undergoing a revitalization it hasn't seen in decades, the firm's founder and principal Adam Robinson tells GlobeSt.com. The San Diego-based commercial real estate investor and developer acquired the parcel for a total consideration of $5.5 million from a private owner and plans to develop a 26,000-square-foot mixed-use project on the parcel integrating high-end restaurants, ground-floor retail, office and multifamily.

The land is fully entitled for development and is located within the rapidly growing Cedros Design District, an open-air retail center featuring 85 boutique shops and restaurants. The planned development, which will break ground this year with an estimated completion date in 2018, will include 3,200 square feet of high-end restaurant space, 5,000 square feet of ground-floor retail, 8,000 square feet of office and eight multifamily units all within a walkable, centrally located urban setting. Robinson says, “This project exemplifies the type of high-quality, coastal mixed-use projects we are looking to build and hold long term. The demand for highly walkable communities, coupled with a trend toward urbanization, is driving the creation of fully integrated, amenity-rich environments that offer a live/work/play experience and foster a sense of community.”

The project is also transit-oriented, in close proximity to the COASTER commuter train and walking distance to a bridge that connects to Highway 101, which has recently undergone a $7-million revitalization effort to transform it into a community-oriented, pedestrian-friendly corridor. RAF Pacifica plans to work closely with Sean MacLeod, a Solana Beach-based developer who originally secured the entitlements for this land parcel.

Robinson notes that walkability is a key component of the economic redevelopment of densely populated cities and districts, and not only attracts residents and businesses, but also substantially increases property values.

RAF Pacifica isn't the only firm that has set its sights on Solana Beach. Stay tuned to GlobeSt.com for an exclusive interview with CBRE's Dave Hagglund on the entry of national home-furnishings and design retailer West Elm into the Solana Beach market on the same street as the new project. Also, a fund manager based in Chicago recently acquired BeachWalk, a 54,973-square-foot retail center along Highway 101 here, which is within walking distance to the Cedros Design District and Amtrak Train Station and less than a mile from Del Mar Fairgrounds, the site of the Del Mar Racetrack. The $33.25-million purchase was completed by CBRE's National Retail Partners—West team, along with Reg Kobzi in the firm's San Diego office. CBRE's retail-investment experts John Read, Philip Voorhees, Jimmy Slusher and Kirk Brummer, as well as Kobzi, also represented the seller, a partnership managed by the Muller Co.

We spoke with Robinson about his firm's entry into mixed-use development as well as the revitalization of this area of Solana Beach.

GlobeSt.com: What has spurred your firm's interest in mixed-use development?

Robinson: This will be our first true mixed-use project of retail, residential and office. I've always liked the South Cedros area—we had a building on the corner that we owned for almost nine years and sold last year, and I like the walkability and its proximity to the train station. For this project, we wanted to diversify our long-term holdings in San Diego, and we want to own more of these trophy mixed-use projects.

GlobeSt.com: There seems to be a lot of movement in this part of Solana Beach. What do you believe is causing it?

Robinson: Ownership changeover. Brixton came in and bought the old antique warehouse building, which is getting an exterior upgrade and West Elm as a tenant. Some owners who were a little more complacent just because their buildings would lease out at really good lease rates are beginning to sell. We bought Cedros Gardens from someone who bought the property in the '50s or '60s. It's finally changing hands. As people get older, they tend to want to go into something that's lower maintenance and less work, so they're beginning to sell. So, we're getting new blood and new owners on the street who are willing to put more money into their buildings and bring them up to today's standards, driving new and better tenants.

GlobeSt.com: What place do you believe mixed-use development has in the San Diego market?

Robinson: I think that it works. It worked in Downtown San Diego, but we're also seeing it really work in the beach communities for people who are moving out of Rancho Santa Fe and don't want these big homes anymore. They're consolidating their lifestyle and retiring—it's not just Millennials. Coastal communities are primed for mixed-use projects. We would love to do another one like this in Carlsbad or Encinitas or Leucadia—it would work extremely well.

GlobeSt.com: What else should our readers know about this particular project?

Robinson: I think Solana Beach is great community, but it's lacking in fine dining. It needs the right restaurant that fits within the community. We're based in Encinitas, so this is a long-term hold for us; we're very vested to make the right decision.