Dominant suburban San Diego retail center sells for $27.2M

NEWPORT BEACH, Calif., Jan. 4, 2022 – JLL Capital Markets announced today that it has closed the $27.2 million sale of Fallbrook Mercantile Center, a 70,411-square-foot retail center anchored by Major Market in the San Diego County community of Fallbrook, California.

JLL marketed the property on behalf of the seller, Gerrity Group, LLC. A private investor acquired the asset.  

Fallbrook Mercantile Center is anchored by Major Market, a high-volume grocery store that has operated at the center since 1989 and has shown its commitment to the location with its long-term lease. The 96.8-percent-leased retail center is also home to a stable and dynamic tenant base with a strong renewal history, including Anytime Fitness, Denny’s, Sherwin Williams, H&R Block, Jersey Mike’s Subs, Burger King, United Studios of Self Defense, Bella Dental Care and Pho House and Grill.

Positioned on 6.54 acres at 713, 825, 833 and 835-855 S. Main Ave., Fallbrook Mercantile Center is the dominant shopping center in Fallbrook, which is 55 miles north of downtown San Diego and immediately east of the U.S. Marine Corps’ Camp Pendleton. The property is at a highly visible location between three major Fallbrook arterials that sees more than 48,000 vehicles per day pass by. The center serves an affluent trade area with 31,300 residents within a three-mile radius who earn an average annual household income of $93,082.

According to JLL Research’s recently released United States Retail Outlook, smaller shopping centers like Fallbrook Mercantile Center saw a 70.3 percent surge in net absorption during the third quarter of 2021 to 14.7 million square feet. Additionally, strip and neighborhood centers have seen the strongest rent growth among retail property types.

The JLL Retail Capital Markets team representing the seller was led by Managing Directors Gleb Lvovich and Bryan Ley and Senior Director Daniel Tyner.  

“Suburban shopping centers have seen a strong demand spike from both tenants and capital,” Lvovich said. “With the rise in hybrid work and working from home, necessity-based retail near quality residential has been strong beneficiary of this trend.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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