A private buyer recently purchased the Marketplace del Rio shopping center in Oceanside for $56.6 million, broker Cushman & Wakefield announced Thursday, July 18.
The center, located on Mission Avenue and anchored by Stater Bros. supermarket, recently underwent an extensive remodeling. The grocery store itself was also remodeled and expanded last year.
Cushman & Wakefield represented the Southern California-based buyer, a high-net-worth investor whose name was not disclosed in the firm’s news release. The seller was publicly traded real estate investment trust ROIC. A high-net-worth individual is defined as a person who has financial assets valued over $1 million, according to financial websites such as Bankrate and The Motley Fool.
Cushman & Wakefield representatives said the private buyer was attracted to Marketplace del Rio because of Oceanside’s community dynamics and recent movements in the grocery industry.
“The exciting new residential and commercial developments in the area including the proposed 92-acre Ocean Kamp mixed-use development anchored by a resort and artificial surf lagoon/wave park and future buildout of the Rancho Del Oro master plan was also an attractive feature of the property as a long-term investment,” Chad Iafrate, who co-represented the buyer with Phil Lyons, said in a Cushman & Wakefield news release.
The 92-acre Ocean Kamp, located on the site of a former Oceanside drive-in theater at Mission Avenue and Foussat Road near State Route 76, is slated to include a mix of housing and tourist amenities.
Lyons noted Oceanside’s retail demographics and the site’s opportunities for future redevelopment.
“The buyer was really drawn to the shifting retail demographics of the Oceanside trade area along with the long-term residential densification and historic stability of the asset,” Lyons said in the news release. “In addition, the buyer liked that the shopping center was located on more than 20 acres of prime coastal north county San Diego land that lends a variety of future alternative investment options, including the potential for redevelopment and / or repositioning over the long term.”
The shopping center’s purchase comes as merger talks between Kroger and Albertsons Cos. continue. Lyons said the purchase highlights a focus on regional grocers among the growth of such conglomerates.
“This was a great opportunity to purchase a high image shopping center that is supported by a strong, well-performing grocery tenant. Stater Brothers’ recent expansion and lease extension at the property is also indicative of its future commitment to the property,” Lyons said in the news release. “With several large-scale grocer mergers occurring recently or proposed, the opportunity to acquire a regional grocer (Stater Bros.) anchored center minimizes the risk for any potential fallout from these mergers.”