Fully Leased Glasshouse Square Sells for $24M
April 27, 2012
The San Diego Daily
Transcript
The 101,818-square-foot
Glasshouse Square shopping center at 3146-3156 Sports Arena Blvd., San Diego
92110, has been sold for $24 million as the “upleg” portion of a 1031 exchange
begun last fall.
The center, at the
junction of Rosecrans Street and Sports Arena Boulevard, was purchased by Rosecrans
Plaza Kiffmann LLC, an entity controlled by San Diego investor Helmut
Kiffmann.
The property had a list
price of $25.64 million immediately prior to the sale according to The
CoStar Group (Nasdaq: CSGP).
Kiffmann paid
$11,148,000 down and assumed what remained on an original $14.5 million loan
made by Wachovia Bank — now held by Wells Fargo Bank (NYSE: WFC) — in
July 2004.
Glasshouse Square —
which The Daily Transcript had reported as being a 92,900-square-foot
center — last sold for $11.5 million in May 2001. It had previously sold for
$10.6 million in November 1998.
The seller this time
(assessor’s parcel 441-600-05) was Glasshouse Square LLC, with Great
American Homes Corp. as its manager.
The buyer was
represented by Brian Crepeau, Ken Robak,
Robert Phillips and Bo Gibbons, of Pacific Coast Commercial.
The seller was
represented by Pete Bethea and Kipp Gstettenbauer, of Cushman &
Wakefield.
The center originally
dates back to 1956. There was an addition in 1958, but the property didn’t
undergo a modernization until 1981, when the UA Glasshouse 6 Theater was
constructed.
While the theater
complex brought in visitors at the outset, many retailers weren’t benefiting
due to a lack of street visibility. Tenants departed, and the center
gained the moniker of “ghosthouse square” by area brokers in the early
1990s. The center was then effectively turned inside out, and the front
of the property was broken into multiple units.
While the tenants began
to return, owners found the multiplex theater didn’t have the draw it had had
in the 1980s, and elected to close it in 1999.
The gamble paid off. The
theater was replaced by the Peninsula Athletic Club, which itself was replaced
by a Gold’s Gym that is one of the center’s strongest anchors. The
center was again renovated in 2003.
In the meantime, fast
food pads were added for In-N-Out Burger and Del Taco. Major
tenants at Glasshouse, now 100 percent leased, also include Staples,
Chuck-E-Cheese, Ultrazone, 7-11, Subway, Panda Express, T-Mobile and Sleep
Train, among others.
“People know this
property,” Crepeau said. “It’s the gateway to Point Loma and it has strong
tenants. There really aren’t any ‘mom and pops’ in there.”
Escrow services were
provided by Renee Marshal, of Chicago Title, and title services were
provided by Linda Menashe, also of Chicago Title.
Assumption of existing
debt was coordinated through Pacific Southwest Realty Services.
Pacific Coast Commercial has also been hired as the property management
and leasing agents for the property.
The other leg of the
1031 exchange happened last November, when a partnership controlled by Kiffmann
sold the three-building, 106,500-square-foot Wateridge Summit Property on
Wateridge Circle in Sorrento Mesa for $45.6 million.
The buyer of that
property was a unit of Rancho Bernardo-based BioMed Realty Trust (NYSE:
BMR), one of the nation’s largest biotechnology property REITs.
Kiffmann has been an
investor in numerous San Diego-area properties over the years. In December 2009
one of his partnerships paid $3.9 million to acquire a 45,120-square-foot
industrial building on Yarrow Drive in Carlsbad.
Kiffmann has led several
local entities including Capital Assets LLC, the Kiffmann Family Foundation
and Coastal Community Homes.
Over the last 31 years, Great
American Capital and its affiliated companies such as Great American Homes
have developed or purchased a combined value of more than $4 billion of real
estate in 500 buildings throughout Las Vegas, California and Arizona, according
to a company website.
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