Kmart site sold; mixed commercial, residential project planned

By: QUINN EASTMAN - Staff Writer | Thursday, January 6, 2005 11:38 PM PST ∞

ESCONDIDO --- A major San Diego developer is buying the site of a closed Kmart on Mission Avenue next to Highway 78, company executives and city officials said Thursday.

American National Investments will build a mixed-use commercial and residential development at the Mission Avenue site, where the Kmart has sat empty since March 2003, Michael Riese at American National Investments said. The residential component of the project will be in cooperation with William Lyon Homes, he said.

Details about the proposed development were limited, but those involved said escrow closed Thursday, finalizing the sale. The sale price was not given.

"I'm still on pins and needles," said Escondido real estate broker Maria Bowman, who was involved in the transaction.

Sale of the property was good news for city officials who had sought a developer for the abandoned-looking building on one of the city's largest empty lots in the downtown area. The 19-acre site is bounded by Highway 78, Rock Springs Road, Mission Avenue and Quince Street. In addition to the empty Kmart store, the property is home to a Chuck E. Cheese restaurant and a Boomers entertainment center that are both in operation.

American National is still consulting with city planning staff on the best mix of commercial and residential uses for the site, Riese said. A team of executives from American National and Lyon Homes gave informal presentations to City Council members individually earlier this week.

"We've received lots of valuable input from city staff," he said. "We hope it's something the community will embrace."

Preliminary plans for about 120,000 square feet of retail and office space and at least a couple hundred residential units, council members said.

"We need to promote home ownership in Escondido," said Councilman Sam Abed. "This is a good way to do it because you're never going to get more affordable housing with detached homes."

Prices for the future residential units were not available Thursday.

City officials had received several proposals for building housing at the Mission Avenue site during the last year, but held out for a mixed-use development that would include some stores.

The proposal now on the table would include some underground parking as well as garages under some residential units, Councilman Ed Gallo said.

American National Investments has built several mixed-use developments in downtown San Diego. It recently bought the property underneath the Fireside Restaurant on Washington Avenue, proposing to build condominiums there.

Lyon Homes built the Hidden Trails development in east Escondido and built more than 2,000 homes in California in 2002, according to the firm's Web site.

Contact staff writer Quinn Eastman at (760) 740-5412 or qeastman@nctimes.com.

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