Terramar Retail Centers Selling Leases On Seaport Village And The Headquarters
Locally based Terramar Retail Centers, which holds Port of San Diego leases for Seaport Village and The Headquarters, is marketing the remaining 35 years on its 40-year lease on The Headquarters, and its remaining lease on Seaport Village, which will expire a year from September, the San Diego Union-Tribune reports.
Seaport Headquarters, at the entrance to Seaport Village, previously occupied by the San Diego Police headquarters, was repositioned four years ago to mix of restaurants and shops, including Cheesecake Factory and Puesto Mexican.
While restaurants at The Headquarters have done well, smaller retailers are having difficulty turning a profit and have complained about the amount of foot traffic. They contend the lack of free parking and a building design that turns its back on the streetfront and lacks signage for smaller shops and eateries is also hurting business.
TRC had planned an $81M redevelopment of Seaport Village two years ago, but it was rejected by port commissioners, who instead moved forward with a much larger plan for the 70 acres. The port board recently signed an exclusive negotiating agreement with Protea Waterfront Development for a $1.2B redevelopment plan that calls for a mix of hotels, shops and restaurants, a public beach, an aquarium and a 480-foot observation tower. Protea CEO Yehudi “Gaf” Gaffen has expressed interest in buying TRC’s leases.