Nuveen Acquires Marigold Center in San Luis Obispo From First Washington Realty for $58.25M
ORANGE COUNTY, Calif. — JLL Capital Markets announced Oct. 2 that it arranged the $58.25 million sale of Marigold Center, a 174,428-square-foot grocery-anchored shopping center at 3900 Broad St. in San Luis Obispo, California. Nuveen Real Estate acquired the property from First Washington Realty, which JLL represented in the transaction.
The center was 91.6% leased at the time of sale. The price works out to approximately $334 per square foot.
JLL Team Led Marigold Center Sale for First Washington Realty
The JLL Capital Markets team was led by Senior Managing Directors Gleb Lvovich and Geoff Tranchina, along with Managing Directors Daniel Tyner and Eric Kathrein, the firm said.
"Assets of this caliber rarely come to market in San Luis Obispo, particularly those anchored by daily-needs retailers with deep roots in the community," Lvovich said. "Investor demand for grocery-anchored retail with embedded NOI growth remains strong, and Marigold generated extremely strong demand. Our team's history with the property, having represented the sale in 2017, along with our previous success in the sale SLO Promenade, gave us a distinct advantage in positioning the center's lease-up and mark-to-market upside for investors."
Tyner said grocery-anchored neighborhood retail with NOI growth potential and high-performing anchors drew broad investor interest during the marketing process. "We are pleased to see Marigold Center continue to perform at a high level under new ownership," he said.
Property Profile: Vons-Anchored Center at Broad Street and Tank Farm Road
Marigold Center sits on approximately 17.55 acres at the intersection of Broad Street and Tank Farm Road, in one of San Luis Obispo's primary retail corridors. The center was built in 1995. It is located just north of San Luis Obispo County Regional Airport and near the gateway to the Edna Valley wine region, and it serves both local residents and visitors. A 2017 transaction report cited approximately 47,000 vehicles per day at the intersection.
The property is anchored by Vons (52,071 square feet), CVS Pharmacy (16,854 square feet) and Planet Fitness (21,006 square feet). Other tenants include Big 5 Sporting Goods, Carl's Jr., Starbucks, Cottage Urgent Care, T-Mobile, Jersey Mike's Subs, Taco Bell, Pizza Republic and Fresh Donuts. Additional tenants listed in First Washington Realty's property materials include Shalimar Restaurant, Fantastic Sams, Cali Dental, Old San Luis BBQ Co., The Joint Chiropractic, PetMed Urgent Care, UPS Store and OneMain Financial.
All shop space and pad buildings are under common ownership, giving the owner full site control and flexibility for future leasing and asset management, according to JLL. The center serves a trade area JLL characterized by high household incomes, strong residential demographics and a highly educated workforce. It is near California Polytechnic State University and is surrounded by emerging residential developments, including master-planned communities, industrial facilities and senior housing projects.
JLL's marketing materials identified approximately 5.3% projected five-year NOI growth for the property.
Price Compares With 2017 Sale
Marigold Center last changed hands in 2017, when Donahue Schriber acquired the approximately 174,400-square-foot center from Kimco Realty for $43.55 million, or roughly $250 per square foot. The 2026 price is $14.70 million, or about 33.8%, higher than that figure, and the per-square-foot price rose about 33.6%. The comparison does not account for transaction costs, capital expenditures, leasing costs, changes in income or the holding period. The center was 89% leased at the time of the 2017 sale.
San Luis Obispo Retail Market Context
San Luis Obispo's retail market remained relatively tight in the second quarter of 2026, with vacancy reported at 4.35% in one market series, despite softer leasing activity and limited new deliveries. First-quarter data showed 4.76% vacancy, average NNN asking rents of approximately $28.48 per square foot and an average retail cap rate of 6.29%.
Marigold's 91.6% occupancy is below the broader market's reported occupancy equivalent.
About the Parties
First Washington Realty is a vertically integrated institutional real estate investment firm focused on grocery-anchored and necessity-based shopping centers. The firm said it owns interests in and manages approximately $8.9 billion of assets across 136 open-air properties totaling more than 21.5 million square feet in 21 states and Washington, D.C.
JLL Capital Markets provides capital solutions for real estate investors and occupiers, including investment sales and advisory, debt advisory, equity and fund placement, and net lease services. JLL said its Capital Markets group has more than 3,000 specialists worldwide with offices in nearly 50 countries.
Sources
- JLL News Release, Oct. 2, 2026: https://www.jll.com/en-us/newsroom/jll-arranges-sale-of-marigold-center-in-san-luis-obispo0