Bay Plaza

Bay Plaza is a 127,224 square foot grocery anchored community shopping center in the dense and ethnically diverse National City submarket. The center is anchored by Seafood City Supermarket with other national and regional tenants that included Big Lots (NAP), JoAnn Fabrics (NAP), ICO Enterprises, Lee's Men's Wear, Hollywood Music, Shoe Shack, IHOP, Forex Cargo, and CU Cooperative Systems.

National City was an extremely challenging market area with only moderate income demographics. The center's older construction contributed to the significant amount of deferred maintenance. In addition, the center had a non-traditional layout with an inadequate parking space ratio that didn't meet current city code.

Our team educated buyers on the favorable local demographics for the ethnic grocer in the center. The team also worked with the local municipality and ultimately initiated action on their part to draft documentation reflecting the parking space requirement deficiency. This document provided for an acknowledgement that the center's parking ratio was "grandfathered in" and ultimately satisfied the buyer's lender. A pricing structure was negotiated with both the buyer and seller that enabled the seller to maximize their value while providing the buyer an opportunity for a strong yield during their hold period.

Return to Case Studies