Regency Scored County’s Top 2012 Retail Buy: $81M Grocery-Anchored Center in Hillcrest

Uptown District is a grocery-anchored urban center that offers 148,638 square feet of retail space and is currently the main destination in its category in the Hillcrest area. It stands at 940 University Ave, in the immediate vicinity of Highway 163, offering customers increased accessibility. Approximately 550,000 residents populate the five-mile radius area Uptown District services. The shopping center is anchored by Ralphs and Trader Joe’s, while other big names in its tenant roster are Starbucks, Party City, Pier 1 Imports, Wells Fargo and Panera Bread. The facility has an attractive occupancy rate of about 95 percent.

Regency Centers Corp. wrapped up 2012 with San Diego County’s biggest retail transaction of the year. Last month, the Jacksonville, Fla.-based REIT paid $81.1 million for Uptown District, a 148,638-square-foot grocery-anchored center located at 940 University Ave. in the Hillcrest neighborhood. Costar Group identified the buyer as Commercial Properties Services, which was represented by Alvin Mansour of Marcus & Millichap Real Estate Investment Services Inc.

Uptown District is anchored by Ralphs and Trader Joe’s, and its tenant roster includes national brands like Starbucks, Party City, Pier 1 Imports, Wells Fargo and Panera Bread. About 550,000 residents live within a five-mile radius. The 26-year-old property was renovated most recently in 2007, Costar reported.

Uptown District is 95 percent occupied, a rate that illustrates the strength of San Diego’s retail market. By the end of last year, vacancy in San Diego had declined to about 3 percent, well below the national rate of 9 percent, according to Marcus & Millichap.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc. at marcusmillichap.com