Steerpoint Buys 727 KSF of Retail in San Diego 

Steerpoint Capital has purchased 727,000 square feet of the 1.1-million-square-foot Shoppes at Carlsbad, a retail center in Carlsbad, Calif. Brookfield Properties sold part of the asset, Yardi Research Data shows.

Steerpoint paid $71.5 million, according to San Diego County public records. Archway Capital LLC provided a non-recourse $42.9 million acquisition loan. Vice President Jessica Carter facilitated the note on behalf of the borrower.

The buyer will implement a $4 million capital improvement plan that includes upgrading the entrance, bathroom renovations and enhancing the common area. Competition from e-commerce is prompting companies to rethink the role of physical stores. Many investors are testing flexible property approaches and adjusting to shifting demand towards community-focused strategies to drive retail traffic.

A large San Diego retail center

Completed in 1971 and renovated in 2017, The Shoppes at Carlsbad is a 98-acre property located at 2525 El Camino Real. Tenants at the retail component purchased by Steerpoint include Yard House, The Cheesecake Factory, Hollister, American Eagle, Outfitters, Dave & Busters, 24 Hour Fitness and Regal. Macy’s and JCPenney anchor the shopping center, though the two stores were not part of the sale. The shopping center was 74 percent leased at the time of the deal.

The property is just off California State Route 78, near the thoroughfare’s intersection with Interstate 5. Downtown San Diego is about 36 miles south.

Steercapital’s retail portfolio currently includes five other assets in California, namely Northridge Mall in Salinas, Antelope Valley Mall, Simi Valley Town Center and Shops at Montebello in Los Angeles, as well as Weberstown Mall in Stockton.