Wednesday, June 12, 2024

Decron Properties Pays $99M for San Diego Shopping Center

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Los Angeles-based Decron Properties has expanded its San Diego portfolio with the $99 million acquisition of Mira Mesa Market West Shopping Center from Stockbridge Capital Group, Decron said on June 6.

The 238,747-square-foot retail center, situated at 10604 Westview Parkway at Mira Mesa Boulevard, counts Home Depot, Smart & Final and CVS among its tenants. Established in 2000, the shopping center is a significant retail hub in the Mira Mesa market.

“We saw this as an opportunity to add a marquee retail asset to our growing San Diego portfolio,” said Decron CEO David Nagel in a statement cited by the Los Angeles Times. “Only a few years ago, it was assumed that brick-and-mortar retail would be taken over by e-commerce. While there is still strong demand for online shopping, we are seeing a rise in people still wanting the in-store experience.”

The purchase included assuming existing financing from New York Life Insurance, featuring a favorable 3.5 percent fixed interest rate for the remaining loan term. 

Over the past year, the 20-acre property recorded 6.9 million visits, underscoring its popularity. Other tenants include Dave’s Hot Chicken, Rubio’s Baja Grill, Starbucks, Jersey Mike’s, Verizon Wireless, PNC and Lazy Dog Restaurant.

This acquisition marks Decron’s second major investment in the San Diego market within six months. In December, the firm purchased Margo at The Society, a 240-unit multifamily development at 201 Del Sol Drive near Hotel Circle, for $125.5 million.

This latest Mira Mesa transaction follows Decron’s recent strategy to exit the Los Angeles market, where it has sold properties for a total of $212 million. The firm cited restrictive legislative measures like the ULA tax and rent control as key factors. CEO David Nagel emphasized the difficulty in raising rents and the impact of new transfer taxes, leading the firm to refocus its investments in less-regulated markets.

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