Sunday, August 9, 2015

McGrath Family Sells Legacy Asset in San Diego, CA

McGrath Family Retail Portfolio, San Diego, CA
San Diego, CA  -- The McGrath Family, known in San Diego as pioneers in construction and real estate, have announced the sale of a portion of their retail portfolio encompassing 294,428 square feet in the Kearny Mesa submarket of San Diego, California to a commingled fund managed by Clarion Partners, working with existing partner HP Investors, LLC. 

The portfolio was 100% leased at the time of the acquisition.

The McGrath Retail Portfolio is located along Clairemont Mesa Boulevard and Shawline Drive, just off of Interstate 805.

Randy LaChance
The portfolio, which is situated on 29.07 acres and comprised of six single-tenant leased retail properties and one retail strip center, is tenanted with some of the most sought after national retailers in the market, including Wal-Mart, LA Fitness, McDonald’s, Food 4 Less, Starbucks, Verizon, and Chipotle, among others.

 “The timing was right for this sale and it worked for us in terms of our long-term goals,” said Laurie McGrath, President of McGrath Development, Inc.

“While real estate development has been challenging, fun and certainly rewarding, we have other things that we would like to accomplish. Our larger goal will be growing our Foundation as well as pursuing redevelopment of some of our other properties.”

The McGrath family has owned the land on which the McGrath Retail Portfolio is situated since the late 1940s.  

In 1990, McGrath broke ground on the development of the McGrath Center, a 50 acre mixed-use project originally approved to include 1,500,000 square feet of office, retail and R & D uses. 

The plan was later revised to include mostly retail uses and a 100,000 square foot industrial “flex” building.  

Mark Caston
Randy LaChance, Senior Vice President, SIOR and Mark Caston, Senior Vice President, both of Voit Real Estate Services, represented the seller, McGrath.

“There is a tremendous pride of ownership that is evident in this portfolio,” said Randy LaChance. “I’ve had the opportunity to work with the McGrath family for 25 years, and I’ve seen the fine quality and attention to detail that they put into their assets.”

LaChance continues, “For prospective buyers, this was a once-in-a-lifetime opportunity to acquire a large retail portfolio in central San Diego. 

"We garnered tremendous interest and activity throughout the sale process, and ultimately identified a buyer that the McGrath family felt would continue the legacy of this special project.”

“This is a core real estate asset in San Diego.  It has maintained an occupancy of over 97% since 2001.  The portfolio has a great mix of credit tenants from the big box tenants to the in-line space,” added Caston, Voit’s retail leasing expert.

Clarion Partners, a real estate investment manager headquartered in New York, together with San Diego based HP Investors, acquired the retail portfolio for $107.15 million on behalf of one of its commingled funds.  The Clarion / HP team represented themselves in the transaction.

For a complete copy of the company’s news release, please contact:

Jenn Quader
Brower, Miller & Cole
(949) 955-7940

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