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Westwood Financial Corp. acquires San Ysidro Village from Developers Diversified Realty, PREI and Coventry partnership for $42,500,000

11/22/05
SAN DIEGO, CA – Westwood Financial Corp. has acquired San Ysidro Village, a 258,000 square foot community shopping center anchored by Kmart, Ross Dress for Less and Marshalls in San Ysidro, California.  The shopping center is located immediately adjacent to Interstate 5 at the United States and Mexico border, the world’s busiest border crossing.  The tenants at San Ysidro Village also include Anna’s Linens, Bancomer Financial Services, Carter’s Children’s Wear, KB Toys, Kirkland’s Home, Marianne, Nine West, Osh Kosh B’Gosh, Reebok and Taco Bell. The property was purchased from a partnership consisting of Developers Diversified Realty, Prudential Real Estate Investors (PREI®) and Coventry Real Estate.  Pete Bethea of Burnham Real Estate represented the Seller and the Buyer in the transaction.

“San Ysidro Village is part of the dominant retail node for retailers in its submarket,” said Joe Dykstra, Executive Vice President of Westwood Financial Corp.   “San Ysidro Village’s location immediately adjacent to the U.S. and Mexico border makes the property a one of a kind asset. There are over 40 million annual border crossings within walking distance of the property.  A significant number of the crossings are by Mexican nationals that are specifically coming to the U.S. to shop from American retailers.  We intend on capitalizing on this huge customer pool by heavily promoting the property on both sides of the border.   We expect to make announcements very soon that will further enhance the property as the destination of choice for shoppers.”  Joe Yetter of Grubb & Ellis has the leasing assignment at San Ysidro Village. 

The property was developed in 1988 as a community shopping center.  In response to the demands of the cross border shopper, San Ysidro Village’s highest and best use was quickly improved to an outlet mall and then to its current format as a power and value retail center.  The property now boasts retail sales in excess of industry averages with some tenants reporting sales over $500 per square foot.  San Ysidro Village perfectly complements the The Shops at Las Americas, a 560,000 square-foot outlet mall with tenants such as Neiman Marcus Last Call, Nike Factory Outlet, Adidas Factory Store, Ralph Lauren Store, The Gap and Coach Outlet.

The City of San Diego has also recently adopted a redevelopment plan for the San Ysidro area.  The San Ysidro Redevelopment Project Area was established to create a world-class gateway between the cities of San Diego and Tijuana.  It will focus on redeveloping the vital business district, attracting new businesses to the area and encouraging continued tourism from American and Mexican visitors. The plan includes building a new state-of-the-art 25,000 square foot library, residential condo units to the west of San Ysidro Village, a new hotel and a walking bridge over the Tijuana River providing even easier access to the cross border shopper from Mexico.

The acquisition of San Ysidro Village is consistent with Westwood Financial Corp.’s program of acquiring institutional quality shopping centers in the Western United States, Florida, Georgia, and Texas.  Westwood Financial Corp. currently owns shopping centers in California, Colorado, Washington, Nevada, Georgia, Arizona, and Texas.  Westwood Financial Corp.’s recent acquisitions include Publix at Cobb Parkway in Atlanta, Georgia, Village of Preston Hollow, anchored by Albertsons, in Dallas, Texas; Lovers Lane Station, anchored by Office Max in Dallas, Texas; Olympiad Plaza, anchored by Albertsons, in Mission Viejo, California; The Pinnacle of Scottsdale, anchored by Safeway, in north Scottsdale, Arizona; and Village Center West, anchored by King Soopers, in Denver, Colorado. 

Westwood Financial Corp. is headquartered in Los Angeles with offices in Phoenix and Sacramento and owns and operates more than 80 retail properties throughout the Western and Southern United States.

For more information, please contact:

Joe Dykstra, Executive Vice President
310-820-5443
jdykstra@westfin.com
www.westfin.com

For leasing information, please contact:

Joe Yetter 858-546-5429
jyetter@breb.com