South Bay Autoplex LLC has purchased South County Autoplex, a 62,855-square-foot automotive retail center located at 1403-1427 Broadway in Chula Vista, California, for $10.2 million from Autoplex Broadway LLC, an LLC created by The Heritage Group (THG) for a group of its private investors. Heritage converted South County Autoplex from an industrial auto-repair facility to a high-quality retail auto-service facility in just over two years after purchasing it.
THG acquired the asset in 2015 for $5.95 million at 83 percent occupancy. The five-building automotive retail center is currently 100-percent leased with 49 percent of the occupancy attributed to national tenants. The seller had most recently signed Caliber Collision and AAMCO as new tenants.
Senior Directors of the Heritage Group, Dan McCarthy and Kyle Clark, represented the seller in the transaction, while broker Tom Holland and James Duncan of Kidder Matthews represented the buyer.
According to Clark, “When this property was acquired, there had been a significant level of deferred maintenance and lack of active management. Through Heritage’s efforts, the physical plant was refined, enabling the leasing team to enhance the tenant mix with stronger local and national tenants at significantly higher rents. This resulted in a strong return for the seller and a reliable future income stream for the buyer.”
The Heritage Group will retain management of the property. “This project required us to roll up our sleeves and focus on building strong tenant relationships,” says Mark Hoekstra, managing director for The Heritage Group. “There was a lot of change happening, and our intimate knowledge of project operations helped get the property to where it is today. This same service profile is something we look forward to continuing to deliver at the property as well as to our new client.”