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3/08/17
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Local real estate company Kleege Enterprises has acquired a full city block on San Diego’s Coronado Island in a recent $22 mil transaction. The land is known as the Coronado Island Assemblage.
Coronado Island Assemblage sits in the center of Coronado Island’s premier dining, nightlife and shopping destination on Orange Ave and near the Hotel del Coronado. The asset consists of 29.7k sf of retail buildings, situated on 50k sf of land. Major tenants in the center include Mootime Creamery, Leroy’s Kitchen and Costa Azul.
Coronado Island Assemblage, which is comprised of nine parcels that have been assembled over the past 40 years, is currently 100% leased to an internet-resistant mix of seasoned tenants, demonstrating strong tenant desire to occupy space in the area.
CBRE’s Tim Kuruzar, Ken McLeod and Matthew Perlmutter represented the buyer and seller, a private local family, in the deal.
“Coronado Island is the quintessential Southern California beach town with high barriers to entry. Assemblages with this much upside are increasingly rare. Orange Avenue represents an exceptional opportunity to capitalize on recent market shifts toward hip urban restaurants and shopping,” said Kuruzar. “The short-term lease structure provides an instant “blank canvas” for the new owner to configure the property according to its highest and best use.”
Fundamentals in the San Diego retail market made a strong comeback in the fourth quarter, with 326.7k sf of positive net absorption. Asking rates continued to climb to $2.26 and the overall vacancy rate tightened, dropping 50 basis points to a post-recession low of 5.2 percent. Overall, the market rebounded positively at the end of last year, with high leasing activity and positive net absorption showing signs of improvement.
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