Port Takeover Of Seaport Village Could Gross $175M Over 5 Years
Taking over management of the 90K SF Seaport Village could generate $175M in revenue for the San Diego Unified Port District before redevelopment of the specialty retail center begins. Current tenant leases will expire Sept. 30, 2018, but the port has offered tenants a lease agreement to keep their shops and restaurants open for up to five extra years, the San Diego Union-Tribune reports.
TRC (formerly Terramar Retail Centers) manages operations at the specialty center, which caters to tourists. The current lease agreement generates $3M annually for the port. Under the proposed agreement, the port would become the landlord and collect rents from about 70 tenants. If rents remain unchanged, the port would gross about $175M between 2018 and 2023, but any capital improvements, maintenance and operational costs would be the port's responsibility. Should the current contract with TRC remain in place, the Port District would net $15M during the same period.
The port would contract with a management company to oversee operations, marketing, renew current leases and organize events to attract tourists and locals. Bidders have been asked to estimate costs the port would need to cover, then staff and outside consultants will compare estimates with industry standards, according to Penny Maus, the port’s business development manager. New management would take over Oct. 1, 2018, and remain in place until redevelopment begins. 1Hwy1, which is part of the Seaport Village redevelopment team, plans to bid on the management contract.