European multinational commercial real estate company Unibail-Rodamco-Westfield (URW) recently announced that it had split and sold its sizeable San Diego retail property in two separate transactions. Mission Valley East (the larger of the two assets) was sold to a joint venture of Lowe and Real Capital Solutions. In a separate transaction, Westfield Mission Valley West was sold to Sunbelt Investment Holdings.

According to statements released by URW, the properties incorporate roughly 1.5 million square feet of commercial space, which was 71% leased at the time of sale. The sale amounted to a total consideration of $290 million.

Westfield Mission Valley was built in the 1960s and then underwent significant renovations in the 1990s. Now, it’s home to nearly 73 stores and restaurants and attracted nearly 10 million visitors in the last year. Target, Nordstrom Rack, Macy’s Home, and AMC Theatres are just a few of the top names that have leased San Diego retail space here.

“Mission Valley center has a solid position in the market with many popular retailers and restaurants,” said Lowe Executive Vice President Joel Mayer. “We intend to build on its strengths and update the property by devoting capital to a host of improvements, including creating more inviting public spaces and plazas to encourage gathering and increase outdoor dining areas. Customers today are seeking food and fun as a part of their shopping experience. We intend to add unique local restaurants, specialty food cafes, and entertainment uses, along with new retailers that offer a variety of experiences for all ages.”

Lowe and Real Capital Solutions plan to reposition the property as a walkable, transit-oriented, mixed-use village, which will refresh the existing retail space and add complementary uses, such as multifamily residential units.

“We are well-acquainted with this property and have long had an interest in its potential, both as a thriving, ongoing retail destination and as an opportunity to bring much-needed housing to this community,” said Lowe Executive Vice President Mike McNerney. “Lowe has a deep history as an owner and developer in San Diego and we have specific insight into the Mission Valley area as the owner of the Town and Country resort, where we completed a comprehensive renovation to the resort and developed the plan to add apartments to several acres at its periphery.”

The Town and Country resort is located one mile east of Lowe’s Mission Valley East acquisition. The 675-room, 40-acre resort dates back to the 1950s. It was later completely renovated and repositioned by Lowe in 2020, while still preserving its Mid-Century modern architecture and design.

Mission Valley West also changed hands with similar high development potential. According to reports by The San Diego Union Tribune, URW had secured a land-use change shortly before the sale. The change allows for increased density at the site, which could mean additional housing and other improvements where there’s currently mostly ample surface parking. With this acquisition, Sunbelt Investment Holdings added to its portfolio of 20 high-quality neighborhood and power shopping centers in southern California and Arizona. In total, its properties incorporate more than 3.5 million square feet of leasable space.

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