City Heights Urban Retail Village University and Fairmount Avenues San Diego, CA Case Studies Home   G. Lamont Blackstone and The Retail Initiative, Inc. (TRI) partnered with a minority-owned real estate development company to negotiate with the Redevelopment Agency of San Diego for the development of an 110,000 square foot shopping center in the one of the most blighted and ethnically diverse areas of the city. Development of the center required the assemblage of over 50 individual parcels (comprising two city blocks) and a street right-of-way covering nearly eight acres. To provide a strong retail anchor for the project, the development team secured a 25-year lease for a 67,000 square foot full-service supermarket from Lucky Stores that was later assumed by Albertsons. The development team negotiated a $16.4 million tax increment financing incentive package with the Redevelopment Agency to create economic feasibility. City Heights was completed on time and on budget in 2001. Nearly 100% leased at opening, the shopping center remains largely fully occupied with such national tenants as Blockbuster, McDonald’s, a Magic Johnson Starbucks, Subway and Washington Mutual. The project serves the retail needs of an ethnically diverse trade area that is 34% Hispanic, 23% Asian and 20% African-American. In addition to providing over 200 full-and part-time jobs, the center is the final phase of a master redevelopment program including an elementary school, public library, community gym, recreational facilities and a continuing education center operated by San Diego Community College. After City Heights opened, a privately sponsored mixed-use project including 385,000 square feet of housing and office space was launched at a site across the street from the center. Developed by TRI and CityLink Investment Corp.