Retail Owners Are Making Big Capital Investments

Donahue Schriber Realty Group is making a major capital investment in its retail property, Del Mar Highlands Town Center. The retail owner is infusing $120 million into the property and expanding it by 120,000 square feet to accommodate consumer demand and strong traffic. The project is already hitting the halfway point, and is expected to deliver in spring 2019. The completed project will be a 400,000-square-foot center with communal spaces and abundant dining and restaurant options.

“Managing our busy and growing traffic flow was the first priority. Our surrounding neighborhood of Carmel Valley continues to grow in both business environments and residential,” Chris Elliott, VP of acquisitions and leasing of development at Donahue Schriber Realty Group, tells GlobeSt.com. “To properly accommodate our growing customer numbers, we needed more parking; and we have looked to make our Center even more of a community gathering place through a mix of design elements in the open areas and mix of tenant offerings. The Center will be expanded by approximately 120,000 square feet. In addition to the 4.5 million square feet of existing class and office space in the trade area, there is an additional 430,000 square feet of office space planned within walking distance of Del Mar Highlands Town Center. Additional clientele will need to be served as we plan for the growth of the trade area.”

The expanded center will include gathering and outdoor communal areas, which have been identified as crucial to providing a unique consumer experience and combatting ecommerce. “We are rolling out openings of various new offerings including our outdoor office, a new plaza level lounge area and improved kids/family spaces before the big unveiling of The Collection and The Sky Deck next year,” says Elliott. “We also have ample parking with our 800-stall parking structure ready for future demand, offering our current customer base even greater convenience. In addition, we have increased the surface level parking space to over 1,450 stalls. The center will be parked at six cars per 1,000 square feet.  Many new leases have been executed in the expansion area and there are more to come.  With an average household income over $180,000, there is a large amount of disposable income in the trade area.  This has helped many of the existing tenants in the shopping center exceed $1,000 per square foot in sales.”

The property will also include a Sky Deck with 20,000 square feet of food and dining options—a retail sector that has proven to be leader for leasing today. “The centerpiece of the development is the addition of the Sky Deck, a 20,000 square foot restaurant collective,” says Elliott. “The Sky Deck is inspired by El Nacional in Barcelona, Spain, a grand gastronomic space that holds multiple culinary venues under one roof. The Sky Deck  will feature up to 10 distinct full-service restaurants, each measuring from 500 to 3,000 square feet with their own dedicated seating areas. This will feature some of the best restaurant operators in San Diego County and will bring a wide variety of culinary offerings to Carmel Valley.  There will also be a large central cocktail bar and an outdoor beer garden located on a mezzanine level, and added valet parking in front of the Sky Deck along with a dedicated area for food delivery pick up.”