The proposed sale was initially for something much smaller.
An ample piece of property in the heart of Hillcrest was sold by Carleton Management to Paragon Real Estate for $13.3 million reports the San Diego Union-Tribune.
The stretch is located on Fifth Avenue between University Avenue and Washington Street home to Snooze American Eatery, Lemonade and India Palace.
Two vacancies currently sit on the block; the former Urban Outfitters property and the defunct H2O Sushi & Izakaya.
In all, the parcels total 32,800 square feet.
Paragon's co-founder Roberto Jinich says he plans on keeping the property long-term and sees a lot of potential.
“We like the location very much, as it’s right in the center of Hillcrest,” Jinich said. “It’s only a block away from the hospital, which is large and expanding. And there’s a lot of foot traffic and jobs around in a well-established neighborhood. It’s exactly what we look for in a property."
Nothing has been discussed about who will move into the two empty spots but Mike Spilky, founder of brokerage firm Location Matters, is currently considering a few possibilities, not all are eateries.
“It could be anything,” Spilky said. “We have an offer from a dental office, for a gym... it could be anything.”
Originally Carelton Management only wanted to sell the building which houses Snooze and another vacancy said Silberman, but Paragon approached them and asked if they might want to sell a larger section.
“It was a wonderful asset for our families to own, but we didn’t sell it out of economic necessity,” Silberman said. “We had a great personal and business relationship with Paragon, so when they inquired whether we might sell (the Hillcrest property), we considered it. It was good timing, a great buyer, and we felt it was time to hand over the stewardship of that block to someone else.”
Altering the look of the block isn't part of the plan yet, but since the parcel is of substantial size, development may come later reports San Diego Union-Tribune.
“It’s a large acquisition,” Spilky said. “There are only certain investors in town that can take on a property this size.”
Paragon also owns the retail spot in the multi-use Icon condo building and Gaslamp’s Commerce Building.