BOARDWALK DEVELOPMENT, INC.
Santee Retail Market Report
August 2009
www.boardwalkdevelopment.com
BOARDWALK DEVELOPMENT, INC.
Index
Page Description
1
2
3
6
Santee & Demographic Overview
Retail summary
Retail center summary
Retail center map
CONTACT
Justin Walseth
Broker License #01713915
(858)485-9300 Direct
www.boardwalkdevelopment.com
DISCLAIMER: All information contained in this report is deemed to be from reliable sources but is not guaranteed.
BOARDWALK DEVELOPMENT, INC.
SANTEE
OVERVIEW
City
of
Santee
Summary
(Provided
by
City
of
Santee)
Santee,
incorporated
December
1980,
is
entering
its
29th
year
as
a
municipality.
With
a
popula>on
of
56,000
and
located
in
eastern
San
Diego
County,
Santee
is
the
twelDh
largest
of
San
Diego
County's
18
ci>es.
With
approximately
half
of
its
land
undeveloped,
Santee
is
one
of
the
few
ci>es
in
the
county
with
space
to
grow.
Residen7al
Base
Summary
Santee’s
primary
residen>al
base
is
located
to
the
North
of
Mission
Gorge
Road.
In
the
2nd
Quarter
2009,
the
average
sales
price
was
approximately
$273,464,
with
approximately
170
houses
traded.
The
average
price
decreased
17%
and
volume
was
up
19%,
compared
to
the
same
quarter,
2008.
Santee
has
an
overall
stable
residen>al
base,
with
many
new
planned
developments.
2009
Demographic
Overview
(Provided
by
City
of
Santee)
Total
Popula7on:
56,846
Average
Household
Size:
2.87
Median
Age:
37.7
Median
Household
income:
$76,771
(Highest
in
East
County)
HOUSING
Number
of
Dwelling
Units:
19,776
•
Owner
occupied:
71%
•
Renter
occupied:
29%
Median
Home
Price:
$332,910
Median
Rental
Rate:
$1,418
BUSINESS
Number
of
Local
Businesses:
1,660
Total
Employed:
15,100
Largest
Private
Employers:
•
Har_ord
Financial
Services
520
employees
•
Edgewood
Geriatric
Hospital
350
employees
•
Wal‐Mart
275
employees
•
Scan>bodies
Laboratory
215
employees
MAJOR
SALES
TAX
BUSINESS
CLUSTERS
General
Commercial
Goods:
570
businesses
Building
&
Construc>on:
78
businesses
Auto
&
Transporta>on:
149
businesses
Business
&
Industry:
383
businesses
EDUCATION
8
Public
Elementary
Schools:
5,627
students
2
High
Schools:
3,713
students
1
Adult
Voca>onal
Center
[Santana
Adult
Center]:
10,800
students
www.boardwalkdevelopment.com
DISCLAIMER: All information contained in this report is deemed to be from reliable sources but is not guaranteed.
1
BOARDWALK DEVELOPMENT, INC.
RETAIL
OVERVIEW
Santee
borders
El
Cajon
&
Interstate
8
to
the
south,
Lakeside
&
Highway
67
to
the
northeast,
and
is
approximately
6
miles
east
of
Interstate
15
on
State
Route
52
(To
be
extended
to
highway
67
by
2011).
It
is
considered
a
secondary
commercial
trade
area
within
San
Diego
County.
Santee’s
main
commercial
district
is
focused
around
Mission
Gorge
Road,
from
Carlton
Hills
Boulevard
to
the
west
and
Magnolia
Avenue
to
the
east,
approximately
1.6
miles
in
length.
The
largest
concentra>on
of
retailers
is
focused
around
Trolley
Center,
located
on
the
northwest
corner
of
Mission
Gorge
Rd.
and
Cuyamaca
Street,
also
serving
as
Santee’s
transporta>on
hub.
It’s
rela>vely
stable
housing
supply
has
not
experienced
the
foreclosures
in
other
areas
of
San
Diego
such
as
Chula
Vista
or
Oceanside.
The
median
household
income
of
$76,771,
the
highest
in
East
County,
has
also
contributed
to
the
stability
of
retail
businesses
within
the
Santee
sub‐market.
Santee’s
retail
commercial
presence
can
be
defined
by
three
areas:
1.
Mission
Gorge
Road
Thoroughfare
This
1.6‐mile
stretch
serves
as
Santee’s
primary
commercial
district.
The
majority
of
Santee’s
lifestyle
centers,
grocery
anchored
centers,
strip
centers,
corporate
headquarters
and
transporta>on
hubs
are
located
along
Mission
Gorge
Road.
Retail
along
this
corridor
benefits
from
the
regional
traffic
between
Santee,
Lakeside,
&
El
Cajon.
Recent
retail
developments
include
Sudberry’s
Marketplace,
Walgreens
on
each
end
of
Mission
Gorge,
Sonic
Burger,
and
Gateway
I
which
were
each
completed
in
the
last
24
months.
Proposed
developments
include
Santana’s
Mexican
Food
located
at
10055
Mission
Gorge
Rd,
as
well
as
Santee’s
Riverview
office
development.
Retail
rents
average
between
$2.00NNN‐$3.25NNN
along
the
Mission
Gorge
thoroughfare.
NNN
expenses
for
retail
space
range
between
$.30‐$.73
depending
on
the
age
&
tax
basis
of
the
subject
center.
Recent
deal
terms
have
included,
on
average
$10/D
in
tenant
improvements,
between
60‐90
days
free
rent,
depending
on
the
credit
worthiness
of
the
tenant.
The
main
commercial
centers
have
experienced
low
vacancy
levels
(<10%)
in
the
last
12‐24
months,
with
one
excep>on
of
the
old
Henry’s
Center.
Barriers
to
entry
in
this
market
include
availability
of
retail
space
as
well
as
declining
revenue
expecta>ons
from
prospec>ve
tenants.
The
majority
of
Santee’s
retail
businesses
share
co‐tenancy
with
major
grocers
and
soD
good
vendors
and
share
limited
street
visibility.
There
is
a
shortage
of
street/vehicular
oriented
retail
space
available.
The
majority
of
tenants
with
street
front
visibility
include
established
banks
and
“Na>onal”
fast
food
eateries
structured
into
long
term
leases.
Most
ground
up
retail
development
has
occurred
along
the
eastern
or
western
por>on
of
Mission
Gorge
Rd.
2.
Mast
Ave,
Carlton
Hills,
&
Magnolia
Ave.
The
streets
dissec>ng
the
arterial
Mission
Gorge
Rd.
serve
as
the
secondary
retail
commercial
loca>ons
in
Santee.
These
avenues
are
considered
to
be
more
neighborhood‐oriented.
These
centers
have
experienced
significantly
more
vacancy
than
the
Mission
Gorge
thoroughfare,
with
many
spaces
remaining
vacant
for
over
12
months.
Rents
in
these
loca>ons
tend
to
be
between
$1.00NNN
to
$2.00NNN,
with
NNN
expenses
remaining
rela>vely
low,
below
$.40/D.
Tenant
interviews
have
indicated
revenues
have
declined
20%
year‐to‐date.
Na>onal
chain
tenants
have
experienced
stable
revenues
with
declines
on
average
less
than
10%
year‐to‐date,
despite
current
economic
condi>ons.
Barriers
to
entry
in
this
market
likely
include
the
lack
of
improved
2nd
genera>on
stores
or
restaurants
and
lack
of
credit
worthiness
to
support
landlord
contribu>ons
for
tenant
improvements.
3.
Cuyamaca
St.
&
Town
Center
Parkway
This
por>on
of
Santee
contains
retail
that
is
located
behind
the
Trolley
Center
(Target),
Home
Depot,
Costco,
&
K‐Mart
retailers.
Although
not
highly
visible
from
Mission
Gorge
Road,
there
is
perceived
value
in
the
synergy
created
by
these
regional
tenants.
The
centers
located
in
this
area
have
experienced
lease
up
challenges,
with
some
centers
remaining
vacant
since
2007.
There
has
been
lease‐up
achieved
in
second
genera>on
restaurants
by
tenant’s
such
as
Rubio’s
and
Antonio’s
Mexican
Food,
both
occurring
in
early
2009.
www.boardwalkdevelopment.com
DISCLAIMER: All information contained in this report is deemed to be from reliable sources but is not guaranteed.
2
BOARDWALK DEVELOPMENT, INC.
RETAIL
CENTER
OVERVIEW
Santee
Trolley
Center
(Target
Lifestyle
Center)
Broker:
John
S>ll,
Flocke
&
Avoyer
Current
Asking
Rent
$2.50NNN
,
$.73
NNN
No
recent
leases
within
the
last
12
months.
2,267
S.F.
available
–
Previously
Beneficial
Finance,
adjacent
to
Massage
Envy
1,932
S.F.
–
Previously
Liffey
Art
House,
in‐line
space
1,904
S.F.
–
Tanning
Salon
Recently
constructed
in
the
last
eight
years,
Santee
Trolley
Square
can
be
considered
the
largest
retail
center
which
enjoys
retail
synergy
between
many
soD
good
stores
including
Target,
Bed
Bath
&
Beyond,
&
Barnes
&
Noble,
among
others.
Sudberry’s
Marketplace
(Grocery
Anchored)
Broker:
Mas
Moser,
Retail
Insite
Asking
Rents
$3.00NNN‐$3.25NNN,
$.73NNN,
1,200‐5,000
S.F.
Available
Recent
Comparables:
FedEX
Kinkos,
06/08
$3.00NNN+,
TI’s/Free
Rent/Term
N/K
Yogurt
World,
to
be
open
9/15/2009,
$3.00NNN+,
TI’s/Free
Rent/Term
N/K
Center
was
completed
in
late
2008
and
experienced
good
lease
up
with
Na>onal
Tenant’s
including
Henry’s,
FEDEX
Kinko’s,
Sleep
Train
Masress,
San
Diego
Na>onal
Bank,
Starbucks,
Optometrist.
Mission
Gorge
Square
(Pharmacy
Anchored)
Broker:
Brian
Quinn,
Flocke
&
Avoyer
100%
Occupied,
NNN
$.35
Recent
Comparable:
08/09
2,640
S.F.
Restaurant,
$1.75NNN,
TI’s/Term
Free
Rent
N/K.
This
center
fronts
Mission
Gorge
Road
and
is
anchored
by
Best
Buy,
Rite
Aid,
and
Navy
Federal
Credit
Union.
The
center
has
good
visibility
toward
Mission
Gorge
Road,
less
so
for
smaller
in‐line
tenants.
Vons
Center
(Grocery
Anchored)
Broker:
Duhs
Commercial:
Scos
Duhs
Currently
100%
occupied
Asking
rents
ranged
between
$2.25NNN‐$2.75NNN,
NNN
$.62
Recent
Comparables:
Nutri7on
Zone,
$1,500
S.F.,
57
months,
$2.13NNN,
Free
Rent
N/K
Center
is
located
on
the
south
side
of
Mission
Gorge
Rd.
near
Cuyamaca
Street.
Pad
buildings
along
Mission
Gorge
include
Kragen,
Wendy’s,
and
Jimmy’s
Diner.
Center
Recently
signed
leases
with
a
Sushi
Restaurant
and
Nutri>on
Zone.
Santee
Towne
Square
Retail
(Strip
Center)
Broker:
David
Silverman,
Flocke
&
Avoyer
Asking
rents,
$2.00NNN,
$.90NNN
2,904
S.F.
Available
Recent
Comparables:
Rubio’s,
es7mated
to
be
$3.00NNN,
90
days
free,
TI’s/Term
N/K
Center
is
proximate
to
Santee
Trolley
Center.
The
center
has
good
co‐tenancy
with
Walmart
and
Costco,
both
proximate
to
center
and
with
limited
visibility
to
Mission
Gorge
Rd.
Rela>vely
new
construc>on
and
current
lease
levels
at
or
above
$3NNN,
property
recently
sold
in
last
6
years.
Santee
Town
Center
(Home
Depot
Center)
Broker:
Vincent
Vu
$1.75‐$2.00NNN
asking
rents,
$.90+
NNN
(various
owners
&
management)
1,366
S.F.
Available
2,732
S.F.
Available
This
centers
retail
presence
is
along
a
ter>ary
loop
road
and
is
set
back
from
Mission
Gorge.
Its
street
orienta>on
does
not
lend
toward
vehicular
traffic.
Once
occupied
by
Big
Lots,
the
centers
main
draw
is
Home
Depot.
There
are
retail
condos
here,
with
rela>vely
high
NNN
expenses,
exceeding
$.80/D.
www.boardwalkdevelopment.com
DISCLAIMER: All information contained in this report is deemed to be from reliable sources but is not guaranteed.
3
BOARDWALK DEVELOPMENT, INC.
RETAIL
CENTER
OVERVIEW
CONTINUED
Plaza
de
Cuyamaca
(Rite
Aid
&
Petco)
Broker:
Dave
Hagglund,
CBRE
Asking
Rents:
Anchor
$1.00‐2.00NNN
19,371
S.F.
Available
–
Anchor
loca7on,
formerly
Henry’s
4,000
S.F.
Available
–
Adjacent
to
Henry’s
space,
vacant
for
18
months+
1,500
S.F.
Available
–
In‐line
space,
used
to
be
Aaron’s
Rents
This
center
fronts
Mission
Gorge
Rd.
in
Santee’s
main
commercial
corridor.
Center
has
substan>al
deferred
maintenance
and
currently
does
not
have
an
anchor
tenant.
Center
has
na>onal
tenant
presence
of
Wells
Fargo,
Petco,
&
McDonalds.
Santee
Square
(Strip
Center)
Broker:
Ryan
Schramm
or
David
Baker,
Ac>ve
Investments
Asking
Rents
$.99‐$1.50NNN,
$.30NNN,
exis7ng
rents
between
$.60‐$1.25
NNN
or
Gross.
Recent
Comparables:
Music
Studio,
mo‐mo,
$.99NNN,
$.30NNN1st
floor
Small
strip
center
located
east
of
Magnolia
Ave.
on
south
side
of
Woodside
Ave.
Structure
is
in
OK
condi>on;
numerous
retailers
give
the
center
a
“Mom
&
Pop”
iden>ty.
Difficult
ingress
&
egress
for
westbound
traffic.
Low
lease
rate
may
indicate
limited
barriers
to
entry
for
retailers.
Center
had
been
listed
for
sale
as
of
7/2009
at
7.9%
CAP,
currently
not
on
the
market.
Low
vacancy
currently.
Carlton
Oaks
Plaza
(Strip
Center)
Broker:
Kroeger
Family
Proper>es,
Shannon
McCraw
Asking
Rents
$1.35NNN,
$.37NNN
1,725
S.F.
available
–
Previous
Mission
Federal
Credit
Union,
who
signed
deal
in
mid‐2007
1,800
S.F.
available
–
In‐line
space
adjacent
to
mortgage
business
with
small
office.
Recent
Comparables:
1,200
S.F.,
$1.29NNN,
No
TI’s,
Term
U/K,
Tenant
TBD
Neighborhood
Center
located
north
of
Mission
Gorge
Rd.
on
Carlton
Hills
Blvd.
Local
traffic
only,
generated
mainly
from
the
residen>al
base
and
Santee
Lakes,
Santee’s
outdoor
recrea>on
area.
Center
is
occupied
mainly
by
“Mom
&
Pop”
small
businesses.
Santee
Gateway
I
(Strip
Center)
Broker:
Jus>n
Walseth,
Boardwalk
Development,
Inc.
Asking
Rents
$2.00‐$3.00
NNN,
NNN
$.70
917–4,384
S.F.
available
‐
unimproved
shell
space,
new
construc7on
Recent
Comparables:
1,239
S.F.,
$.70
NNN,$3.00NNN,
Subway,
early
2008
High
profile
corner
strip
center
located
on
the
hard
corner
of
Mission
Gorge
Rd.,
Magnolia,
and
Woodside
Avenue
(83,000
ADT),
new
construc>on
completed
in
2007.
Center
shares
ingress/egress
with
Walgreens.
Santee
Gateway
II
(Strip
Center)
Broker:
Jus>n
Walseth,
Boardwalk
Development,
Inc.
Asking
Rents
$1.00‐$2.50
NNN,
NNN
$.50
2,710
S.F.
available
‐
unimproved
shell
space,
recently
remodeled,
end‐cap
space
available
with
pa7o
Recent
Comparables:
1,239
S.F.,
$.70
NNN,$3.00NNN,
Subway
Neighborhood
Center
at
the
east‐end
of
Mission
Gorge,
directly
adjacent
to
Walgreens
and
proximate
to
heavily
trafficked
intersec>on
of
Mission
Gorge
Rd.
and
Magnolia
Ave.,
current
tenant’s
include
Elite
Wear,
Excalibur
Bail
bonds,
and
ACE
Cash
Express,
very
mo>vated
owners
to
lease.
www.boardwalkdevelopment.com
DISCLAIMER: All information contained in this report is deemed to be from reliable sources but is not guaranteed.
4
BOARDWALK DEVELOPMENT, INC.
RETAIL
CENTER
OVERVIEW
CONTINUED
Santee
Towne
Center
(Ross
Center)
Broker:
Lauren
Matricardi,
CBRE
Asking
rents:
2.25NNN,
NNN
Recent
Comparables:
TBD
Ross
anchored
center
considered
to
be
in
the
back
of
the
trade
area.
Center
is
set
slightly
below
grade,
giving
it
less
visibility
along
the
loop
Pathways
Center
(Church
anchored)
$1.25NNN
asking
rents,
NNN
900
S.F.
Available
Church
anchored
center
north
on
Carlton
Hills
Blvd
within
Santee’s
residen>al
base.
Center
is
dilapidated
and
has
low
traffic
counts
along
Carlton
Hills
Blvd.
Santana
Village
(Albertsons
Anchored)
Broker:
Joel
Wilson,
CB
Richard
Ellis
$1.75NNN
asking
rents,
NNN
$.25‐$.40
4,200
S.F.
Available,
Divisible
street
front
loca7on,
shell
condi7on.
Former
gym,
4200
Square
Feet
available
in
pad
building
adjacent
to
Starbucks.
Neighborhood
oriented
center.
Center
across
from
Santana
High
School.
Center
is
a
neighborhood
oriented
center
proximate
to
Santana
High
School.
Has
experienced
vacancy
in
pad
building,
since
early
2008,
small
amount
of
deferred
maintenance,
primarily
local
traffic
orienta>on.
Property
is
listed
for
sale
as
of
Summer
2009.
Mission
Creek
(Food
4
Less)
Broker:
Mike
Clark,
BREB
$1.75NNN‐$2.50NNN
asking
Rents,
NNN
100%
Leased
Recent
Comparables:
iTAN,
2008
N/K,
es7mated
rent
$1.75NNN‐$2.40NNN.
Center
located
north
of
Mission
Gorge
on
Cuyamaca
Blvd.
Set
within
Santee’s
residen>al
base,
the
centers
tenants
include
Food
4
Less,
iTAN,
laundry,
tutoring
services,
among
others.
Recently
signed
lease
with
iTAN
in
2008.
To‐be‐built
pad
retail
building
is
proposed
for
north
por>on
of
parcel.
Mission
Plaza
(Express
Tire
Center)
Broker:
Vic
Gauspohl,
Colliers
Interna>onal
$1.20‐$1.50
NNN
asking
rents,
$.49NNN
1,127‐1,525
S.F.
Available
–
Inline
space
adjacent
to
real
estate
office,
limited
visibility
to
drive‐by
traffic,
shell
space.
Recent
Comparables:
Cricket,
1,357
S.F.,
2‐3
yrs,
Alberto’s
Mexican
Food
opened
within
the
last
six
months,
sufficient
parking.
Center
enjoys
good
visibility
along
Mission
Gorge
but
inherits
difficult
ingress
driving
west
&
egress
exi>ng
west
due
to
no
traffic
light
on
Mission
Gorge
Rd.
Current
vacancy
dates
12‐18
months.
www.boardwalkdevelopment.com
DISCLAIMER: All information contained in this report is deemed to be from reliable sources but is not guaranteed.
5
11
5
4
3
Santee, Ca, 92071
14
2
7
6
10
12
8 Pathways Center
9 Santana Village
10 Mission Creek (Food 4 Less)
11 Mission Plaza (Express Tire)
12 Plaza de Cuyamaca (Rid Aid, Petco)
9
16
15
13
13 Santee Square (Strip)
14 Carlton Oaks Plaza (Strip)
15 Santee Gateway I
16 Santee Gateway II
Expansion (under construction)
1
BOARDWALK DEVELOPMENT, INC.
8
1 Santee Trolley Square
2 Sudberry’s Marketplace
3 Mission Gorge Square
4 VONS Center
5 Santee Towne Square
6 Santee Town Center
7 Santee Towne Center (Ross)
6