High Profile Retail, Creative Office, and Ocean View Residential Complex in Carlsbad Village Closes at 5.33 Percent Cap Rate
CARLSBAD, Calif. – (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has completed the sale of Roosevelt Plaza @ Carlsbad Village, a 19,950-square-foot three story mixed-use property comprised of retail, creative office and residential located in the coastal community of Carlsbad in north San Diego County, California. The purchase price was $8,195,000, representing a cap rate of 5.33 percent.
Executive Vice President Eric Wohl and Associate Andrew Cunningham, CCIM, represented the seller, Stos Partners of Encinitas, California. Vadim Baum of Keller Williams Realty in Huntington Beach, California, represented the buyer, La Cienega Property Group of Beverly Hills, California.
Built in 2009 on .25 acres at 560 Carlsbad Village Drive & 2975 Roosevelt Street in the city of Carlsbad, the 100-percent-leased mixed-use multi-tenant property is comprised of retail, creative office, and ocean view residential. One of Roosevelt Plaza’s retail tenants, Paon Restaurant & Wine, is a Zagat rated high-end French-inspired restaurant featuring outdoor patio dining and tasteful interior décor.
“It is extremely rare to find a recently-built coastal property in North San Diego for above a five-percent cap rate and below $500 per square foot,” said Wohl. “We received multiple offers all hovering near asking price due to the trophy location, newer construction and below market rents.”
Roosevelt Plaza is located on the premier retail thoroughfare in the heart of Carlsbad Village, made up of boutiques and national credit tenants and is within walking distance to the Pacific Ocean. Credit tenants in the immediate trade area include Starbucks, Bank of America, 7-Eleven, Ace Hardware, Jack in the Box, US Bank, Smart & Final, Taco Bell/KFC, Denny’s, Carl’s Jr., Union Bank, Verizon and Subway.
The property is also easily accessible to San Diego County, located 0.5 miles from the I-5 freeway benefiting from 178,600 cars per day. There is ample free public parking (110 spaces), located directly across the street from the property.
“We closed escrow within one percent of our asking price with a Southern California-based 1031 buyer,” said Wohl. “The buyer fell in love with the location, diversity of uses and all the new development happening in the area. There is also an approved condominium map in place allowing for multiple exit strategies including the separate sale of individual units at higher prices per square foot.”
Wohl added that Carlsbad Village has a high barrier to entry due to the low vacancy rate and lack of developable land which made this asset very desirable. Within three miles of the property, there are 71,879 people with a household income that is in excess of $85,000. Home prices within a one-mile radius of the property have averaged over $1 million within the last 12 months in this coastal community.
About Stos Partners
Stos Partners is a privately held commercial real estate investment and management firm that acquires, owns, operates and develops opportunistic commercial properties with a focus on value-add industrial, office and mixed-use investments. Led by a Principal with a track record of being the most active buyer of commercial real estate between 2009 – 2017 in San Diego, the firm partners with high net worth private capital and institutional investors to identify and invest in assets that are poised for strong future growth. Headquartered in San Diego with an office in Orange County, Stos Partners delivers deep local expertise and longstanding relationships that translate to a unique ability to source deals quickly and profitably.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.
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MONAGHAN COMMUNICATIONS, INC.