Movie Goers from U.S., Mexico Fuel Center’s Popularity Top Performing Multiplex TheaterTrades to San Diego REIT Specializing in NNN Retail Properties
Executive Vice President El Warner, head of Colliers’ Retail Capital Markets group, stood in as the lead broker during negotiations with supporting roles played by teammates Senior Vice President Charley Simpson, Associate Vice President David Maloy, and brokers Caitlin Zirpolo and Jordan Gomez, all based in the brokerage firm’s Orange County, Calif. offices in the City of Irvine.
“This has become one of the most contemporary entertainment centers in San Diego,” said Warner. “In addition to being within a 550,000-square-foot power center, two main factors appealing to the buyer were the opportunity to have a fairly e-commerce-immune asset in its portfolio and the reliable long-term income stream provided by a consumer-driven, net-leased asset like this one.”
According to Warner, the buyer was a San Diego-based and privately held real estate investment trust (REIT) specializing in single-tenant, net-leased, retail assets. Citivest Commercial Investments was the seller, represented by the Colliers team.
Located at 770 Dennery Road in the City of San Diego, the larger center, which boasts anchor tenants Home Depot, Walmart and Vons, as well as an extensive list of smaller national credit tenants, is directly accessible friom the San Ysidro Port of Entry in Tijuana and attracts movie goers from both sides of the international boundary. Officials said the mix of U.S. and Mexican patrons is attracted to the geographically close center due, in large part, to the theaters’ state-of-the-art IMAX and RealD 3D screens.
Citivest, in partnership with Hutensky Capital Partners, is developing some 73,000 square feet of new retail and restaurant space adjacent to the AMC multiplex. According to listing brokers Stewart Keith and Bradley Williams of Flocke & Avoyer Commercial Real Estate in San Diego, the now-under-construction addition is 90% pre-leased.
“That fact alone – that this new addition is nearing full occupancy as it is still being built -- demonstrates the long-term viability of this entertainment center,”added Warner. “It also serves to justify Citivest’s decision to partner with Hutensky Capital whose premier reputation has been built, in part, on its equity investments in major-market retail assets.”