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Retail Section of Encinitas Development Sells for $24M

Buyer RAF Pacifica Group Has Several Projects in Northern SD County
January 5, 2018
RAF Pacifica Group has acquired the 38,828-square-foot retail portion of the mixed-use Pacific Station in Encinitas, CA, for $24 million, or about $618 per square foot.

The seller of the property, part of a larger development at 687 S. Coast Highway 101 that opened in 2011, was Loja Retail Partners of Walnut Creek, CA.

A statement from brokerage firm Retail Insite said that Encinitas-based RAF Pacifica Group, led by President Adam Robinson, oversees a portfolio of 2.75 million square feet of commercial real estate with a niche focus on mixed-use, office and industrial properties. The company has several new projects in various planning and construction phases throughout San Diego County, particularly the northern portion, with approximately 1 million square feet in the pipeline over the next 24 months.

"Demand for mixed-use projects is on the rise as lifestyle preferences continue to evolve toward more walkable, community-focused environments," said Robinson in an RAF Pacifica release. "This is especially true in dense coastal communities such as Encinitas. Located within a high-quality mixed-use development, the retail portion of Pacific Station will be fueled by its surrounding residential and office counterparts, generating significant traffic, and adding to its long-term value."

He said the retail center was acquired at a significant discount to replacement cost, further adding to its long-term value and appeal.

"If we were to try to reproduce this asset today, it would take years to complete, and would cost approximately $1,200 per-square-foot, more than double the purchase price," Robinson added.

In July 2011, a Loja affiliate announced that it had purchased the retail portion of Pacific Station for $19.5 million. That deal, as well as the most recent one, did not include 47 residential condominiums or other non-retail components within the 1.4-acre Pacific Station, originally developed by locally-based John DeWald and Associates, near Encinitas’ Coaster train station.

The development was built at the southeast corner of South Coast Highway 101 and E Street, on a site that formerly housed an underutilized industrial building.

The retail section includes the restaurant Solace & The Moonlight Lounge, among other tenants. There is also a space vacated last year by grocer Whole Foods, though local brokers have said the unexpired lease is still held by Amazon, Inc., which acquired the Texas-based Whole Foods chain last year.

Matt Moser of brokerage firm Retail Insite represented both the buyer and the seller in the most recent sale. Please see CoStar COMPS #4099195 for more on this transaction.



Lou Hirsh, San Diego Market Reporter  CoStar Group   
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