December 13, 2018— Pendulum Property Partners, a fully integrated real estate firm based in Southern California, has acquired a long-term leasehold interest in a coveted retail portfolio within San Diego’s historic Liberty Station neighborhood. Encompassing 361-aces of waterfront real estate, Liberty Station transforms the former Naval Training Center San Diego (1923–1997) into one the city’s most desirable mixed-use development projects.
In partnership with The Seligman Group, Pendulum acquired 327,000 square feet of multi-tenant retail and office space for an undisclosed sum. The property is approximately 98% occupied. The seller, McMillin, retains ownership of one hotel site, two hotels under construction and a number of office assets in the neighborhood. Additional property owners within Liberty Station include the NTC Foundation, the Rock Church, High Tech High and hundreds of homeowners.
Pendulum’s transaction primarily consists of the retail components of Liberty Station’s master planned development, more specifically within The Quarter, South Point and Arts District. Alongside popular brands such as Trader Joe’s, Vons and Starbucks, Pendulum’s anchor tenants include nationally recognized restaurants and retail experiences—Liberty Public Market food hall, Stone Brewing World Bistro & Gardens, El Jardín, Corvette Diner, Moniker General and Slater’s 50/50— as well as a nine-hole golf course, a landlocked training ship of the U.S. Navy, and a chapel that has been used for a variety of events and services over the years.
Pendulum will add additional value through the continued activation of common areas as well as upgrading the tenant mix as leases expire. The end goal is to enhance the overall Liberty Station experience for the consumer and the surrounding community.
Liberty Station is centrally located, within a mile of San Diego International Airport, five miles north of downtown and in close proximity to all major freeways. Offering more than 50 acres of green open space, Liberty Station exists as one of the few places in the city to boast manicured parks, gardens and recreational offerings, all while overlooking the San Diego Bay, downtown skyline and the iconic Coronado Bridge.
The acquisition strengthens Pendulum’s expansion strategy in the San Diego market, which began earlier this year with the purchase of a 327,000 square-foot Class A office campus in the city’s Kearny Mesa submarket. According to Kevin Hayes, Managing Partner at Pendulum, “San Diego is one of the most diversified economies in the nation and offers many compelling investment characteristics. Over the past 10 years, countywide growth has outpaced both the State of California and the nation. Our investment strategy is centered around acquiring well located assets with the potential to add value over time. Liberty Station fits perfectly within this strategy.”
Liberty Station is Pendulum’s third acquisition this year, bringing its total acquisition volume to over $400 million in 2018. Pendulum also closed on a 400,000 square-foot Class A office property in Huntington Beach known as One Pacific Plaza as well as the aforementioned 327,000 square-foot office campus in Kearny Mesa known as StoneCrest. Both properties were acquired alongside institutional capital partners.