Balboa Mesa Shopping Center Trades Hands in $59M Deal
- Sep 24, 2012
Regency Centers Corp. completed a deal to own San Diego’s Balboa Mesa Shopping Center. The real estate company paid a premium of $59.5 million to Balboa Realty L.L.C. Regency is currently on track to acquire a number of retail properties boasting high occupancy rates and representing good value for money. The 189,321 square feet of space the shopping complex offers are leased by a number of high-quality tenants.
Developed back in 1969, the retail center is anchored by a Vons grocery store, and also includes a 77,000-square-foot Kohl’s and a 24,000-square-foot CVS/pharmacy. At the time of the transaction, the property had an occupancy rate of 95 percent. The center is helped by its placement at the intersection of Balboa and Genesee avenues: More than 60,000 vehicles pass by on a daily basis, and the area’s residential population totals about 126,000 in a three-mile radius.
According to Regency Centers’ vice president of transactions, Howard Overton, the newly acquired property “fits Regency’s standards for a dominant shopping center, including infill location, market-leading anchors and population density.” The company has big ideas for its new property, with Gregg Sadowsky, Regency’s senior market officer, noting that “the 95 percent-leased property offers an immediate redevelopment opportunity to increase the square footage of the center, further improving the net operating income for the project.”
Regency Centers is one of the largest owners, developers and operators of grocery-anchored and community shopping centers. At the end of the second quarter of 2012, the company had a 364-property real estate portfolio, including co-owned assets.
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