Every week, Daily Transcript real estate editor Richard Spaulding selects a commercial real estate transaction that he feels has particular merit in its time and place. The following are Spaulding's top three retail sales of 2013.
No. 1 -- Reg Kobzi, Joel Wilson, CBRE
1330 Orange Ave., Coronado
Three stories, 49,322 square feet
Total consideration: $21.5 million
The property was 100 percent leased at the time of sale. Tenants include Vigilucci's Del Coronado, Island Birkenstock, Lavender Day Spa, Don Michel Salon, Coronado Resort Wear Company, Coronado Shorts Company, The Tavern, La Salsa, Subway and Domino’s Pizza.
The property was recently renovated with new storefronts and the creation of a new paseo facing Hotel Del Coronado, and the sidewalls were lowered to create a more functional layout.
Closing the deal: The CBRE Private Capital Group team of Reg Kobzi and Joel Wilson represented the seller, SCP Coronado LLC, c/o SIMA Corp., of Santa Barbara. Daniel Berkus, Paragon director of acquisitions and development, handled the transaction for the buyer, PREF Coronado Plaza LLC of San Diego, an affiliate of Paragon Real Estate Fund. The acquisition was financed with a $12.9 million loan from RBS Financial Products Inc.
“It's a high price per square foot -- it's over $400 a square foot on the purchase price,” Kobzi said. “The seller had done a major remodel and you know how tough it is (to get approvals) in the city of Coronado.
“So, they did a major remodel and we filled it up to 100 percent. The cool thing about the buyer, it was (at the time) their ninth acquisition in the past 18 months. They also bought the project down on Fifth Avenue, Gaslamp City Square.”
7438-7466 Girard Ave. in La Jolla
33,400 square feet
Total consideration: $8.5 million
About the property: The Girard Village Collection, a retail center at is an approximately 33,400-square-foot multiuse, one- and two-story office/retail project south of Pearl Street. The center was constructed in 1952-59. The deal also included an adjacent 7,000-square-foot parking lot at 7435 Fay Ave.
Closing the deal: The buyer was La Jolla Pearl Plaza LP of Santa Monica.
Krystal Group Inc. is the general partner of the buyer, and Charles Shahram Zohoury is the president of Krystal. The acquisition was financed with a loan of $5.58 million from Cathy Bank (Nasdaq: CATY).
The seller of the property was Union Bank, as trustee of The Testamentary Trust of Thomas L. Shepherd Unitrust, and as trustee of the Ruth F. Shepherd Unitrust.
Bill Shrader, Cushman & Wakefield
705-709 Sixth Ave., San Diego
9,872 square feet
Total consideration: $5.7 million
About the property: An approximately 9,872-square-foot restaurant building at 705-709 Sixth Ave. in downtown San Diego occupied by Buca di Beppo was sold for $5.7 million.
The buyer was HPE 705 6th Avenue LLC of San Diego. HPE SD Retail LLC is the manager of the seller, and HP Investors LLC, a California limited liability company, is the manager of HPE SD. Sumeet Parekh is the manager of HP Investors.
The seller was M.H. Sherman Company, with Gary Pickett as the authorized signatory.
The property at the corner of G Street consists of a 4,840-square-foot building constructed on a 5,000-square-foot lot at 705 Sixth Ave., and a 5,000-square-foot building constructed in 2001 on a 5,000-square-foot lot at 709 Sixth Ave.
“The property is a solid income-producing investment in the heart of the Gaslamp with the potential for repositioning to a more intensive use over the long term,” Chuck Klein said. “Buca di Beppo has been a part of the downtown landscape at this location since 1999. With the area evolving into a 24/7 live, work and play environment, this property is well positioned to benefit from steadily increasing consumer demand.”