January 9, 2018— RAF Pacifica Group, a San Diego-based owner, operator and developer, has acquired the 39,000 square-foot retail portion of Pacific Station, a 100,000 square-foot mixed-use asset encompassing residential, office and retail space, in the heart of the coastal community of Encinitas, California for $24 million. The retail center is currently occupied by high-quality national tenants including Amazon, Whole Foods, and Wells Fargo, among many others.
According to Founder and President of RAF Pacifica Group, Adam Robinson, this acquisition is well-aligned with the firm’s ongoing strategy to diversify its portfolio throughout San Diego County.
“San Diego remains a core focus for us, and we have been extremely active throughout the region for the last several years, especially in terms of industrial and office space,” says Robinson. “This acquisition is demonstrative of our approach to diversify our portfolio beyond creative industrial and office and branch out into other product types including mixed-use, retail and multifamily.”
Robinson explains that the firm began diversifying its portfolio last year with new developments such as Cardiff Reef Apartments in Cardiff-by-the-Sea; flight, a mixed-use development in Solana Beach, lift, a mixed-use property in Carlsbad and the redevelopment of the Carlsbad Theater on State Street in downtown Carlsbad.
“Demand for mixed-use projects is on the rise as lifestyle preferences continue to evolve toward more walkable, community-focused environments,” says Robinson. “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.”
The retail center was acquired at a significant discount to replacement cost, further adding to its long-term value and appeal, according to Robinson.
“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 explains.
RAF Pacifica Group will hold the retail asset long-term.
“As demand for these all-encompassing lifestyle/mixed-use centers continues to grow, we believe that this will be a high-value addition to our portfolio,” Robinson states. “We anticipate very strong performance in this property over the next several years.”
Pacific Station is located at the corner of Coast Highway and E Street in Encinitas, California. Matt Moser at Retail Insight represented RAF Pacifica as the buyer and Loja Retail Partners as the seller in this off market transaction.