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3/15/19
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Escondido Valley Center, a 92.2k sf shopping Center in Escondido, was acquired by an OC-based family trust. The center, anchored by ALDI, HomeGoods and BevMo, is located at one of the busiest regional intersections in the city.
The property was sold by Paragon Commercial Group of El Segundo. According to our sources, the deal came in somewhere near $25 mil.
Escondido Valley Center is located at 1346, 1352, 1358 West Valley Pkwy, on 7.23 acres near the on/off ramp to I-15 Freeway with over 220,000 cars per day. Tenants ALDI, HomeGoods, BevMo! and Staples represent 97% of the 100%-occupied shopping center. Most of the tenants are on new or recently extended long-term leases.
Other national tenants located at the intersection include Albertsons, Target, The Home Depot, Big Lots, Bob’s Furniture, Cost Plus World Market, CVS/pharmacy Dick’s Sporting Goods, Pier 1 Imports, Ross Dress for Less, Tilly’s, T.J. Maxx and ULTA Beauty.
The buyer, represented by Ken McLeod and Zachary Card of CBRE, fulfilled a 1031 exchange with the purchase and transacted all-cash. Ed Hanley, Bill Asher and Kevin Fryman with Hanley Investment Group Real Estate Advisors repped the seller in the deal.
“The overall strength of this location was demonstrated in 2018 when Toys"R"Us vacated within the immediate trade area and was quickly backfilled,” said Hanley. “There is minimal box vacancy in the region where there is a customer base of over 227,000 people with an average household income of $90,000 within a five-mile radius.”
“It is still a seller’s market for neighborhood centers situated in prime locations in Los Angeles, Orange and San Diego counties,” said Hanley. “With sustained pent-up demand and a limited supply for investors to pursue, we expect cap rates to remain steady for those properties that have sustainable market rents with predictable incremental rent growth long-term.”
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