More than 500,000 square feet in parts of nine San Diego-area shopping centers, all or majority-owned by Florida-based Gatlin Development, are being marketed for a quick sale by San Diego-based Flocke & Avoyer Commercial Real Estate.
While the centers are being marketed together, a brochure makes it clear the properties may be bought together or in part. The submittal deadline to Flocke & Avoyer is end of day Tuesday.
A total of 523,123 square feet is available for sale within parts of Pacific Coast Plaza in Oceanside, Town Center North in Oceanside, Stonecrest Plaza in Murphy Canyon, SouthBay Marketplace on the border of Chula Vista and National City, Palm Promenade in South San Diego, EastLake Village Center East in Chula Vista, EastLake Terraces in Chula Vista, East Country Square in El Cajon, and East County Village in El Cajon.
"We've got spaces from a couple of tenants to major portions of big centers," said Steve Avoyer, Flocke & Avoyer president and co-founder. "There's a tremendous scarcity of this kind of property."
Avoyer added that there has been a wide range of interest in the properties from smaller investors to large publicly traded real estate investment trusts and major insurance companies.
Seven of the centers have Wal-Mart (NYSE: WMT) stores that are under separate ownerships. Gatlin Development is probably best known for its development of shopping centers with Wal-Marts as focal points, including several in San Diego County.
The title on those Wal-Marts won't change as a result of the transactions. The same is true for any other retailers whose property is held under separate ownerships. The larger stores are often referred to as shadow anchors.
Gatlin's website, using information provided by Flocke & Avoyer and LoopNet, indicated how much space is for sale and for lease at six of the locations. Additional information was in CoStar Group databases.
Pacific Coast Plaza in Oceanside is a 450,000-square-foot center shadow-anchored by Wal-Mart, and anchored by Best Buy, Bed Bath & Beyond, Sports Authority, Cost Plus and Staples.
Flocke & Avoyer reported Pacific Coast Plaza had by far the most space for sale with 312,313 square feet. Gatlin said the center had 30,075 square feet of vacant space as of May.
The 247,000-square-foot Town Center North property, shadow-anchored by Wal-Mart and Vons, had just 3,150 square feet available at the time of a LoopNet survey in May. Gatlin is trying to sell 43,750 square feet of this center. Tenants in the Oceanside center include AT&T Cingular, GNC and Starbucks.
EastLake Terraces is a 420,000-square-foot center in Chula Vista shadow-anchored by a nearly 150,000-square-foot Wal-Mart along with a Home Depot (NYSE: HD) shadow-anchor of about 200,000 square feet. LoopNet, in conjunction with Flocke & Avoyer, reported there was just 4,110 square feet left to lease in the center as of Tuesday. Gatlin is offering 61,012 square feet for sale, which would have been much larger if Wal-Mart and Home Depot were leasing their spaces.
Tenants in the Gatlin-owned portion of EastLake Terraces include Navy Federal Credit Union, Chase Bank, a UPS store and a host of smaller tenants such as MV TanVentures LLC, dba iTan Tanning Salon. That tenant leased 1,400 square feet of retail space at Eastlake Terraces at 2127 Olympic Parkway for five years at $276,229, as of 2012.
Close to EastLake Terraces is the 117,778-square-foot EastLake Village Center East development (shadow-anchored by a Kohl's) with just 1,436 square feet available for lease. Gatlin is selling 16,800 square feet out of EastLake Terraces. Tenants in this portion include Little Caesar's Pizza and Supercuts.
Partners Urgent Care-Eastlake leased 3,464 square feet of office space at 2315 Otay Lakes Road at EastLake Village Center East in Chula Vista from a Gatlin entity for five years at $724,448 as of 2011.
The more than 600,000-square-foot Palm Promenade property is shadow-anchored by Wal-Mart, Home Depot, and Vons. It also contains an AMC 24-screen multiplex at Dennery Road and Interstate 805 as another shadow anchor. Flocke & Avoyer claims Palm Promenade has the distinction of having been 100 percent leased for the past 14 years.
Given the amount of square footage taken up by Palm Promenade’s large shadow anchors, the amount of available space for sale is only 32,200 square feet. Tenants in the portion for sale include Wells Fargo Bank, Nextel and Subway.
Another property Gatlin is selling is 8,632 square feet within a roughly 275,000-square-foot portion of SouthBay Marketplace. Wal-Mart and Best Buy are shadow anchors. Payless Shoesource, Radio Shack and Lane Bryant are among the tenants at this property, according to CoStar.
The 243,000-square-foot East County Square development in El Cajon, anchored by Wal-Mart and Vons, had only 5,000 square feet of vacant space as of last month according to LoopNet and there was 28,500 square feet for sale. Tenants in the portion for sale include Massage Envy, Payless Shoesource and Subway.
The 12,301-square-foot East County Village shopping center in El Cajon had 3,515 square feet of available space as of May. Gatlin is selling all of this property. Sprint Nextel and Salon 1500 are tenants at that strip center.
Big shadow-anchor tenants such as Fry's Electronics, PetSmart, Vons and Dollar Tree mean there is little to sell in the 469,000-square-foot StoneCrest Plaza in Murphy Canyon. Only 7,615 square feet is available for sale. The occupancy of the 1995-vintage center is reportedly 100 percent. Tenants in the portion for sale include Radio Shack, Aero Hair & Nails and Payless Shoesource.
6165 Greenwich Dr. Ste., 110
San Diego, CA 92122
Aug. 2, 2012 -- George Chamberlin speaks with Steve Avoyer, president of Flocke & Avoyer Commercial Real Estate, about retail space in San Diego.
Jan. 17, 2012 -- Steve Avoyer, president and CEO of Flocke & Avoyer, talks with George Chamberlin about how the commercial real estate market, particularly retail space, has improved and changed over the past few years.