August 7, 2015 – An affiliate of Los Angeles-based FESTIVAL DEVELOPMENT CORPORATION has purchased “Sorrento Court” Shopping Center (San Diego, CA) for an undisclosed price. The property includes + 59,000 square feet of leasable area on +/- 6.3 acres and is located within the highly disable area of Sorrento Valley in north San Diego. The seller had owned/managed the center for approximately 9 years and utilized Eastdil’s San Diego Office for the sale.
Anchored by Staples Office Supply and featuring 17 restaurant spaces, this neighborhood center serves as the only concentration of retail and restaurant food court space within the heart of the San Diego’s thriving technology hub of Sorrento Mesa – featuring approximately 30,000 daytime employees within direct vicinity to the property. The center was approximately 95% occupied at the time of the sale offering in place income, while affording the opportunity for strategic redevelopment and re-leasing to increase value.
“We see incredible value in this property due to its in-place cash flow, combined with medium term upside. Its strategic positioning within a highly supply constrained San Diego sub-market provides direct adjacency to thousands of highly paid and educated tech engineers and business associates. The property is uniquely positioned to justify new capital investment and selective re-merchandizing to increase customer traffic, tenant sales, and NOI”, Ryan Shea, Vice President of Investments for Festival.
Festival Development Corporation is an affiliate of The Festival Companies, a leading developer and operator of retail and mixed-use properties, and a full-service commercial real estate advisory firm. Headquartered in Los Angeles, California, Festival is recognized nationwide as a respected innovator of urban in-fill shopping center redevelopment and ground-up development projects, transforming real estate into quality retail destinations that suit their unique locations and demographics. Since 1980, Festival and its founding principals have successfully acquired, developed, redeveloped and operated more than 120 projects in a broad array of retail property types — including regional malls, high-quality street retail projects, lifestyle center destinations, resort centers, community centers, neighborhood centers, urban retail and retail-driven mixed-use properties. Please visit www.festivalcos.com for more info and a partial track record of completed projects.