Two retail units totaling 8,519 square feet on the ground floor of the 14-story 113-unit Diamond Terrace condominium under construction at 427 Ninth Ave. in downtown San Diego's East Village 92101, have been sold for $4.55 million.
The 2,269-square-foot retail unit B was sold for $1.2 million to Jason Whitehead and Ra Jaddou, husband and wife, 589 Third Ave., San Diego 92101. City National Bank provided first and second loans of $600,000 and $480,000, respectively, and California Statewide Certified Development Corp. provided a subordinated SBA loan of $495,000. The entire space has been leased to Ra Jaddou Inc., dba J & S Mortgage Group, West End Mortgage Group, West End Realty, and West End Realty and Mortgage. Martin and Fitzgerald represented both sides on the transaction.
Construction was begun on Diamond Terrace in September 2003. Fehlman/LeBarre and Perkins and Co. were the architects.
"The high price and successful sale of the Diamond Terrace commercial units demonstrated the tremendous retailer demand for space in the ballpark neighborhood," said Martin. "The driving force behind the investor and retailer confidence in the project is based on the impressive demographic projections. Within a three three-block radius of the project, our study identified over 4,000 residential units, 1 million square feet of office space and 500,000 square feet of retail space being delivered to the neighborhood in the next three to five years. Clearly this is much more than a ballpark."
Other sales of ground-floor retail space in residential developments involved 6,878 square feet of Little Italy condominium retail space in the Portico at 1435-1445 India St. for $3.95 million in June.
Another reported transaction was late last summer with the sale of 12,400 square feet in the Renaissance at 645 Front St. for $6.8 million.