Gerrity Group Purchases Old Grove Marketplace in Oceanside
- May 14, 2012
Gerrity Group has acquired the Old Grove Marketplace in Oceanside from Sea Breeze Properties LLC for $19.55 million, RenTV.com reports.
The 81,300-square-foot Oceanside retail center is anchored by Ralphs, Starbucks, US Bank and Lowes Home Improvement (NAP). Originally developed by Sea Breeze Properties LLC in 2005, Old Grove Marketplace presented a challenge for Bruce Schiff Phil Lyons of Cassidy Turley San Diego, which represented Sea Breeze Properties in the transaction. He stated that investors are typically trying to take advantage of the low interest rate environment and acquire retail centers that are free of existing debt to maximize leverage. The Gerrity Group had to assume the existing debt on the property, creating leverage of just 44 percent equity to 56 percent debt. However, the group considered the asset a valuable long-term investment with a strategic position in North San Diego County, as well as a well-anchored shopping center that is able to drive not only weekday but also weekend traffic into the retail center.
In other local news, Meritage Home is set to begin construction in northeast Oceanside
on a 92-house project, according to The North County Times.
The 76-acre development was initially known as Hi-Hope Ranch and was approved by the Planning Commission in 2006. The project was stalled following the housing market crisis, but in October Meritage bought the property and has already initiated preliminary site development work. The modified project design was unanimously approved by the Oceanside Planning Commission and construction of the model homes should start next month. With a new name, the Marisol development located at Melrose Drive and State Road 76 will feature one- and two-story homes ranging in size from 2,818 square feet to 4,460 square feet. Peter Vanek, forward planning director for Meritage Homes, said the homes will be priced in the $500,000s.
Photo Courtesy of: www.oldgrovemarketplace.com