California Centers

MAR 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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14 California Centers Magazine | March 2018 C C least $10 per square foot, where mom and pops are paying just a few dollars, sometimes $4 per square foot." Preston Fetrow, senior vice president of CBRE, National Retail Partners — West in Newport Beach, California, notes that although developments are hard to come by in the peninsula, they are not entirely un- heard of. "Monterey has recently seen a few new developments, such as the Dunes, which caters to the local residents of the community," he says. "The resi- dents have historically been deprived of quality services and goods." The Dunes on Monterey Bay is a public-private partnership reuse and redevelopment project on an infill site at the former Fort Ord Army post. It includes a shopping center, 1,237 new homes, a new Marriott SpringHill Suites, business park and veteran's clinic. Notable tenants at the Dunes' retail component include Century NextGen Theatre, Target, Kohl's, REI, Best Buy, Chipotle, Blaze Pizza and Smashburger. With development so hard to come by, many investors opt to buy their way into this limited-competition city. That includes the Pratt Company, which picked up Uptown Monterey, a 25,319-square-foot center with best-in- class tenants like Trader Joe's, Peet's Coffee, Chipotle and Massage Envy, in 2011. Though the purchase price was not disclosed, the asset traded at a 7.36 percent cap rate. Pacific Castle acquired the nearby Prune Tree Cen- ter, a 131,601-square-foot Safeway- and CVS-anchored center situated in the affluent Monterey County coastal community of Prunedale in 2012 for $7.2 million. Then there's the flagship sale of Linda Mar Shopping Center, a 169,000-square-foot Safeway-an- chored community center in Pacifica that sold to Kimco Realty in 2014 for $58 million, representing a 4.75 per- cent cap rate. Though such trades may not take place everyday in this coastal oasis, Fetrow argues that doesn't mean the market is stagnant. Instead, it de- mands discipline among investors, commitment among retailers and pa- tience from both. "It is incumbent for an investor or retailer to understand the exceptional www.bamlaw.net 3146 Red Hill Avenue, Suite 200, Costa Mesa, California 92626 | (tel.) 714.432.0990 (fax) 714.432.0352 We offer only the highest caliber of experienced, efficient and business minded attorneys for all real estate and business transactional matters. We are results oriented, entrepreneurial in character and committed to providing quality legal services on a cost effective basis. • Commercial Real Estate Leasing & Development • Lending & Finance • Business & Corporate Transactions • Real Estate Litigation • Estate & Tax Planning • Probate & Trust Administration Michael J. Mirkovich Michael G. Robinson Partner Partner Catherine J. Weinberg Elizabeth Estes Ricci Partner Partner Andrew Y. Prochnow Scott L. Shannon Associate Associate Kevin S. Miao Brent H. Coeur-Barron Of Counsel Of Counsel commercial real estate and business attorneys William D. Buckner Managing Partner The Dunes on Monterey Bay is a mixed-use development that contains a shopping center with retailers like Kohl's, Target, REI, and Best Buy. Preston Fetrow Senior Vice President CBRE, National Retail Partners – West

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