It's a story San Diegans have heard over and over the past few years: An anchor/landmark/iconic property is sold and developers plan on a teardown and lots and lots of apartments.
Surprisingly, that's not on the table for Hazard Center, which changed hands recently for $68.25 million, sold to BH Properties, according to property records.
John Jennings of Newmark, which specializes in commercial real estate consulting, served as an adviser on the deal. He told NBC 7 this week that the plan for the site with the previous owners was to build housing, at least in part, but is now focusing on revitalizing its retail properties and continuing to serve as stewards of the 15-story office building on the site, which, according to BH, currently has a 77% occupancy rate with "long-tenured tenants."
"After working hard for the past 10 years to create the necessary site plan flexibility for the mixed-use residential vertical redevelopment, you can imagine the disappointment when the previous ownership aborted the redevelopment plans and offered the property for sale," Jennings said. "However, I am now ecstatic to be representing the buyer BH Properties as they embark upon a retail renovation that will not only transform Hazard Center into a first-class lifestyle-oriented shopping center but will also allow Hazard Center to finally reach its full potential."
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Unlike most other recent real-estate transactions made locally, its previous owner, which took ownership back in September 2003, lost money — a lot of money — on the deal, a symptom of a commercial property sector hard hit by the pandemic and the work-from-home/hybrid/flex movement. The San Diego County Assessor's Office confirmed to NBC 7 on Thursday that the same three parcels that changed hands last week were purchased for $100.06 million in 2003.
BH confirmed the sale last Thursday in a news release, breaking down its investment with the following metrix:
- 14.5 acres
- 405,250-square-foot mixed-use campus
- 1989: construction of retail elements completed
- 1990: 15-story office tower completed
- 270,000-square-foot office building
- 135,000 square feet of retail space
"We have had San Diego County on our list of preferred markets for quite some time," Jim Brooks, president of BH Properties, said in the news release issued last week. "Hazard Center, with its terrific location in central San Diego along with its roster of strong retail brands, checks all the boxes and expands our footprint in California.”
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Hazard Center's current retail tenants include Barnes & Noble, UltraStar Mission Valley Cinemas, Orange Theory Fitness, BJ’s Brewhouse, Wood Ranch BBQ & Grill, Which Wich Superior Sandwiches and FedEx Office, among others.
