Paseo Del Rey | 2 Tenant Retail Investment
Chula Vista, CA (San Diego County)
Price: $1,830,000Cap Rate: Building SF: 4,038 SFLot Size: 0.382 AcresYear Built: 1995Status: Closed

Investment Highlights: 

Rare San Diego Retail Investment Opportunity – Future Value Through Below-Market Rents – The subject property is located within the highly sought after Chula Vista market, in the heart of San Diego County’s South Bay. The property is currently leased at under-market lease rates, providing an investor with future value once rent is adjusted to market rate.

100% Leased Two Tenant Investment – Strong Operators with Successful Operating Histories  – The subject property is 100% leased to two tenants who have successful operating histories at this location. Kwon’s Blackbelt Academy just exercised a 5-year lease extension early, reflecting their commitment to the location. The new lease term features 3% annual rent increases and expires in May 2023. Medifast Weight Control Centers has 3+ years remaining on their NNN lease which features 3% annual rent increases throughout the Primary Term and Fair Market increases in the 5-year Option period.

Strategic Location Along Major Retail/Commuter Corridor – Outstanding Retail Synergy  – The subject property is ideally located at the signalized intersection of East H Street & Paseo Del Rey, seeing combined traffic counts of 52,000+ cars per day. Assets located along the E. H Street corridor are highly coveted as this corridor carries commuters/shoppers to and from the affluent East Lakes community just east of the subject property. The property benefits from outstanding retail synergy, with surrounding retailers including Ross, Dollar Tree, Home Depot, Costco, Walmart Supercenter, Petsmart, AutoZone, Burger King, Chili’s, 24 Hour Fitness, Regal Cinemas, and many more.

Proximity to Majore Freeways – Quick Access to Downtown San Diego & Nearby Cities – The property is centrally located within Chula Vista’s main arterials, just 2 miles from the on/off ramp to Interstate 805 and 5 miles from Interstate 5, providing quick access to Downtown San Diego and other nearby communities.

Strong Market Demand – Low Vacancy Rate – Dense Infill Location – Affluent Demographics  – Chula Vista’s retail market has been very competitive, with rents in the top half of San Diego’s submarkets. The H Street Corridor is in particular demand, with retail asking rents ranging from $35-$45/sf/NNN and very limited availability. The subject property is located in a dense infill location, with nearly 445,000 people and over 130,000 households within a 5-mile radius with an average household income over $90,000.

Located in Highly Sought After Chula Vista Market – Area of New Development & Innovation  – Chula Vista is the second-largest city in San Diego County and is located at the center of one of the richest cultural, economic and environmentally diverse zones in the United States. New developments are in the works, such as the 535-acre Bayfront Master Plan and the four-year University and Innovation District on 375 acres of City-owned land in Eastern Chula Vista, setting the region up for additional new growth.


Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977