Caruso Affiliated Announces Purchase and Sale Agreement for Land for Future Development in Carlsbad

CARLSBAD, Calif.--(BUSINESS WIRE)--Caruso Affiliated today announced that it has signed an agreement with San Diego Gas & Electric (SDG&E) for the Company’s purchase of a 48-acre parcel of land along Cannon Road in Carlsbad, California that will be used for a future development project. Caruso Affiliated will work closely with SDG&E to explore various project options as the planning process moves forward, and will develop a timeline for the project in coordination with the City of Carlsbad, the community and SDG&E throughout the permitting and approval process.

“After carefully considering all potential options for this property, we have decided to move forward with selling it, pending regulatory approval”

Caruso Affiliated will work with the Carlsbad Strawberry Company, Inc. that currently farms on the property, to preserve strawberry and agricultural use along Cannon Road as part of any plan. Caruso Affiliated will also ensure that the neighboring parcel of land that is protected open space will remain as open space. Before building on the land, Caruso Affiliated will consult directly with the Carlsbad community for their input. This community-oriented approach is a vital component of the Company’s long track record of creating and operating highly successful retail, dining and entertainment destinations, and will be central to the development of the Carlsbad project.

“I am looking forward to working with and getting to know more members of the Carlsbad community,” said Rick Caruso, President and CEO, Caruso Affiliated. “Hearing this community’s needs and interests will be crucial to the project’s success, and we will listen closely to insights from neighborhood businesses, civic leaders and residents on this exciting project. This land is a rare space with overwhelming potential, and we will work to ensure our plans reflect the community’s desires as we create a welcoming gathering place for all of Carlsbad.”

“After carefully considering all potential options for this property, we have decided to move forward with selling it, pending regulatory approval,” said Pam Fair, vice president, environmental and operations support, SDG&E. “As a proud member of the Carlsbad community, SDG&E believes it is important that any use of the Cannon Road property reflects the interests, values and input of the Carlsbad community, and we look forward to participating in the permitting process as the site plan and permit applications are developed.”

“We have a long history of farming in the Carlsbad community and look forward to that continuing for many years to come,” said Jimmy Ukegawa, President, Carlsbad Strawberry Company, Inc. “We have had a great working relationship with SDG&E and are confident in their commitment, as well as that of Caruso Affiliated, to working together to continue strawberry farming along Cannon Road as part of any plan that develops. We are eager to work with Caruso Affiliated and learn about their vision for the future of this property.”

“We are pleased that Caruso Affiliated has chosen Carlsbad for a future development,” said Matt Hall, Mayor, City of Carlsbad. “Caruso Affiliated has a proven track record of building exceptionally high quality destinations, incorporating public input into their designs and enhancing the communities they serve. We are [thrilled] Caruso recognizes Carlsbad’s unique desirability and will remain supportive as they prepare their plans for this premiere location.”

About The Property

The 48-acre parcel sits directly east of the Interstate 5 and abuts the southern edge of the Agua Hedionda Lagoon to the north. It is located at the northeast corner of Interstate 5 and Cannon Road. The parcel, long designated in the City’s General Plan as Tourist/Recreation Commercial, also includes a portion of land currently in use as strawberry fields. The existing overhead power lines and underground gas pipeline will remain in service.

Directly east of the 48-acre parcel is a large swath of property, which has been designated in the City’s General Plan as Open Space, and will be preserved as such.

Caruso Affiliated

Caruso Affiliated has created a portfolio of the most highly regarded, talked-about and top-performing retail, residential and mixed-use properties. For the last 20 years, the company has completed new developments, redevelopments and property repositioning throughout Southern California and, in the process, has redefined the retail and residential industries by establishing new successful industry standards. The company is recognized as one of the most innovative and prominent developers in the country. Caruso Affiliated's tenants' growth is approximately two times that of the largest publicly traded REITs and sales per square foot at Caruso properties are 75 percent higher than the national industry average. Caruso's track record positions it to attract the most sought-after national and international retailers.

Caruso Affiliated's portfolio of top performing retail and residential properties includes The Grove in Los Angeles, The Americana at Brand in Glendale, the Waterside in Marina del Rey, The Promenade at Westlake, The Lakes at Thousand Oaks, The Commons at Calabasas and 8500 Burton Way in Los Angeles. The company also has several projects in development, including the expansion of The Americana at Brand, and the company's first luxury destination resort – the Miramar in Montecito.

Carlsbad marks the company’s first venture into San Diego County.