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1346, 1352 & 1358 West Valley Parkway Escondido, California 92029 SAN DIEGO GROCERY-ANCHORED INVESTMENT OPPORTUNITY ESCONDIDO VALLEY CENTER
1346, 1352 & 1358 West Valley ParkwayEscondido, California 92029
SAN DIEGO GROCERY-ANCHORED INVESTMENT OPPORTUNITY
ESCONDIDO VALLEY CENTER
NKF Capital Markets4655 Executive Drive, Suite 800San Diego, California 92121Corporate License #01355491
JOHN JENNINGSSenior Managing DirectorT +1 858 875 [email protected] RE License #01215740
RETAIL ANALYST
JOHN DEMPSEYFinancial Analysis DirectorT +1 213 596 [email protected] RE License #01934117
ROB IPPOLITOSenior Managing DirectorT +1 858 875 [email protected] RE License #01242854
GLENN RUDYSenior Managing DirectorT +1 949 608 [email protected] RE License #01412484
FINANCING
JESSE LOWEManaging DirectorT +1 858 875 [email protected] RE License #01261314
INVESTMENT ADVISORS
LOCAL LEASINGADVISOR
BILL BAUMANVice ChairmanT +1 213 298 [email protected] RE License #00969493
KYLE R. MILLERExecutive Managing DirectorT +1 213 298 [email protected] RE License #01716644
EXECUTIVE SUMMARY
NKF Capital Markets Retail is pleased to present the opportunity to acquire the Escondido Valley Center, a 92,000 square foot grocery-anchored neighborhood center located in north San Diego County. Escondido Valley Center was artfully repositioned in 2017 and is now home to industry leading tenants ALDI Supermarket, HomeGoods, BevMo! and Staples. Escondido Valley Center has successfully transitioned from its former community center status to a grocery anchored asset; a true testimonial to the quality of the underlying real estate and demand profile of the West Escondido retail submarket.
Escondido Valley Center is 100% leased and located one block from Interstate 15 at Escondido’s premier retail intersection of 9th Avenue and West Valley Parkway. The acquisition of Escondido Valley Center not only affords its investor the safety of its supermarket anchor, but offers a highly regarded submarket that boasts an impressive list of today’s “best-in-class” retailers (see page 13). It’s truly rare to find a submarket where retail re-development (and associated cost to do so) is a viable strategy. Only the strongest demand can accommodate such an undertaking. West Escondido is one of those examples.
The West Escondido submarket not only serves as the dominant retail corridor, but also has distinguished itself as the premier business district in northeast San Diego. The submarket’s healthy blend of non-retail destinations include eighteen car dealerships, the recently constructed 740,000 square foot Palomar Medical Center, and is home to Stone Brewery, the largest brewery in Southern California. This combination enhances the area’s drawing power making it a true destination.
Escondido Valley Center represents an excellent long-term grocery-anchored investment in a proven North San Diego county submarket. Its location, upgraded tenancy and impressive history make the acquisition of Escondido Valley Center an excellent long term retail investment.
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NORTH SAN DIEGO COUNTY RETAIL
San Diego County continues to perform as one of the top retail markets in the nation. With a scarcity of quality assets available, the opportunity to acquire Escondido Valley Center provides an investor with a stable asset in the highly sought-after north county region.
GROCERY ANCHORED
Grocery anchored retail continues to outperform all other retail products. ALDI Supermarket delievers a much needed value proposition for area consumers, as well as the coveted “daily needs” draw of customers that enhances the sales of other retailers in the center.
CREDIT PROFILE
97% of the offered GLA is occupied by today’s premier retailers providing ease of management and a reliable income stream.
INVESTMENT HIGHLIGHTSSTABILITY & TENURE
Staples and BevMo! have occupied the center since 2000 and 2008 respectively while new additions ALDI Supermarkets and HomeGoods have committed to new 10 year leases.
RECENT CAPITAL IMPROVEMENTS
With new additions ALDI Supermarkets and HomeGoods, Escondido Valley Center is the recipient of over $2.5 Million of extensive capital improvements including parking, new roofs, HVAC and new facades thereby limiting near term capital expenditures.
MARKET CO-TENANCY
West Escondido is home to an impressive list of industry leading retailers including Target, Home Depot, TJ Maxx, Dick’s Sporting Goods, Albertson’s, Ross Dress for Less, Petco, In-N-Out and more. Overall occupancy for the submarket stands at 98%.
BARRIERS TO ENTRY
No developable parcels in the immediate or surrounding trade area will result in continued
demand for existing centers and rent appreciation.
DENSE/AFFLUENT CUSTOMER BASE
Estimated population of 150,177 and average annual household incomes of $73,401 in three miles demonstrate density as well as
expendable income.
DAYTIME / OFF-PEAK TRADE
Escondido Valley Center’s daytime population within two miles of the center is more than 50,000 people bolstered by Palomar Hospital (3,300 employees), Stone
Brewing Company, and eighteen car dealerships.
EXCELLENT TRAFFIC GENERATORS
With 61,000 cars passing Escondido Valley Center along West Valley Parkway and Auto Parkway, traffic counts at the center are the highest
in the city.
EASE OF MANAGEMENT
Five tenants in one building offers ease of management.
NO EXISTING FINANCING
The asset will be delivered free and clear of existing debt.
INVESTMENTHIGHLIGHTS
NKF Capital Markets4655 Executive Drive, Suite 800San Diego, California 92121Corporate License #01355491
JOHN JENNINGSSenior Managing DirectorT +1 858 875 [email protected] RE License #01215740
RETAIL ANALYST
JOHN DEMPSEYFinancial Analysis DirectorT +1 213 596 [email protected] RE License #01934117
ROB IPPOLITOSenior Managing DirectorT +1 858 875 [email protected] RE License #01242854
GLENN RUDYSenior Managing DirectorT +1 949 608 [email protected] RE License #01412484
FINANCING
JESSE LOWEManaging DirectorT +1 858 875 [email protected] RE License #01261314
INVESTMENT ADVISORS
LOCAL LEASINGADVISOR
BILL BAUMANVice ChairmanT +1 213 298 [email protected] RE License #00969493
KYLE R. MILLERExecutive Managing DirectorT +1 213 298 [email protected] RE License #01716644
OFFERING GUIDELINES
$27,675,000PRICE
92,169RENTABLE SQUARE FEET
$1,522,217YEAR 1 NOI
5.50%CAP RATE
100.0%OCCUPANCY
7.233 ACRES
LAND AREA
