The Hub

The Challenge

JS Western (“JSW”) acquired a 27,469 sf neglected multi-tenant retail center in Vista, CA (North San Diego County) that was 70% vacant due to its outdated appearance and lack of professional management. The property, situated at the intersection of San Marcos, Vista, and Carlsbad, had competing demographics making it a challenge to define it’s prototypical customer. Our challenge was to curate the right tenant mix, drive more night-time business to the center, and improve the aesthetics on a limited budget.

The Solution

JSW acquired the retail center for $6.05 million in a joint venture with a single family office who was in a 1031 exchange. The family office entrusted JSW to embark on a comprehensive rebranding and renovation strategy. The property was renamed “The Hub” and underwent a contemporary facelift, significantly enhancing its aesthetic appeal and marketability. Through targeted marketing and coordinated leasing efforts between JSW and an outside leasing team, JSW achieved 100% occupancy within 18 months.

The Result

JSW’s strategic repositioning and effective asset management led to remarkable financial outcomes. The Hub was sold for $12.5 million, resulting in a 3.26x* Multiple on Invested Capital (MOIC) and a 26.3%* Internal Rate of Return (IRR) over a 6-year hold period, significantly surpassing the family office’s original proforma expectations. This case highlights JSW’s expertise in improving underperforming properties and its ability to create a solution for family offices in 1031 exchanges who seek valuable off market opportunities without the requirements of day-to-day responsibilities.

*MOIC = Multiple on Invested Equity. Un-audited. Prior performance is not indicative of future results. Potential investors should consult a professional prior to investing. Case Study is a representative transaction and is not indicative of the results of the aggregate portfolio. Scott Tiano served as sole or co general partner and was involved in varying capacities.