Lynn LaChapelle and Bob Prendergast
961 and 965 Palomar Airport Road, Carlsbad
Total consideration: $15 million
About the property:
The new 15,317-square-foot Palomar Place shopping center at 961 and 965 Palomar Airport Road in Carlsbad has a prime coastal location near Legoland, the Carlsbad Flower Fields, Carlsbad Premium Outlets and Costco.
The two-building shopping center was constructed in 2013 on 1.75 acres and is fully leased. Palomar Place replaced a Pat & Oscar's restaurant on the southwest corner of Palomar Airport Road and Armada Drive. Property tenants include Wells Fargo, Starbucks, GNC, Nothing Bundt Cakes, The Veggie Grill and Burger Lounge.
Closing the deal:
Mission Equities Real Estate Inc. sold the Carlsbad shopping center in September 2014 to a partnership formed by Hannay Realty Advisors and MDC Realty Advisors USA for $15 million. JLL managing directors Bob Prendergast and Lynn LaChapelle led the transaction.
“When you look at the rent roll of long-term tenants with good credit, in front of a Costco, in an irreplaceable location, you throw it all together and mix up this collective soup, not a lot of properties end up looking like Palomar Place,” Prendergast said.
He credits Mission Equities with conceiving of an “adaptive reuse play” of the former Pat & Oscar’s, by converting a shuttered restaurant property into a multitenant retail property.
“Land is so valuable, and I think we’ll start to see changes of use (in the marketplace),” Prendergast said. “Mission Equities had a vision to turn it in to neighborhood retail center. You can’t get a plot of dirt like this any more. So why not? Nobody else thought of it.”