The El Cajon Town & Country shopping center, a grocery-anchored retail property located at 328-420 N 2nd St, has been listed for sale at $20.5 million, equating to approximately $385 per square foot. The property, spanning 53,233 square feet, operates at a 99 percent occupancy rate and generates a net operating income (NOI) of $1,415,319, reflecting a cap rate of 6.9 percent.
CBRE is handling the sale on behalf of NewMark Merrill, who acquired the shopping center in 2008 for $11 million, according to public records reviewed by The Registry. The marketing brochure indicates that the property is stabilized with a triple-net (NNN) lease structure, ensuring that tenants cover all pro-rata shares of operating expenses, including common area maintenance, property taxes, insurance, and management fees. Originally built in 1965 and renovated in 2014, El Cajon Town & Country sits on 4.3 acres and offers 215 parking spaces.
Marketing materials show that the shopping center features a mix of national and regional tenants, including Grocery Outlet, Dollar Tree, Chase Bank, Goodwill, T-Mobile, Baskin Robbins, and Total Wireless. Based on the brochure, more than 70 percent of the gross leasable area is occupied by major credit tenants, reinforcing the center’s stability and investment appeal. El Cajon Town & Country is located at the intersection of Madison Avenue and 2nd Street, just south of the Interstate 8 Freeway’s 2nd Street exit. The site experiences a combined traffic count exceeding 37,000 cars per day, while the surrounding trade area has a population of nearly 147,000 residents within a three-mile radius and an average household income exceeding $110,000.
The brochure underlines that the El Cajon shopping center features strong historical occupancy, with the majority of tenants having occupied their spaces for over a decade. Recent lease renewals and extensions reportedly highlight tenant commitment, while scheduled annual rent increases provide investors with improving long-term returns. In addition, Dollar Tree ranks in the top 92 percent of visits among its 8,600 locations nationwide, according to Placer.ai cited in the listing. El Cajon Town & Country is also positioned within a major retail corridor, surrounded by brands such as Walmart, Sprouts, Petco, and Walgreens. At the same time, the property’s location within a broader San Diego market adds to its appeal.
CBRE’s Patrick Wade is managing the listing.
The San Diego retail real estate market continued to navigate shifting economic conditions at the close of 2024, with trends highlighting a mix of resilience and challenges across different submarkets. According to the Kidder Mathews Q4 report, the region posted a total net absorption of 202,274 square feet, marking a strong rebound from the previous quarter’s -68,895 square feet. Meanwhile, the overall vacancy rate edged up slightly to 4 percent, a 30-basis-point increase year-over-year, signaling a tempered demand environment. Despite rising vacancy, the average sale price per square foot surged to $480, reflecting a 29.3 percent increase compared to the same period in 2023. At the same time, cap rates remained relatively stable at 5.7 percent. Analysts suggest that ongoing investor confidence, coupled with select high-profile acquisitions, has sustained transaction momentum even as leasing activity remains moderate.
