Brixton Capital acquired the Escondido Gateway shopping center from Mountain Pacific Properties for $28 million in an off-market transaction, the company announced April 30.

The 89,252-square-foot property consists of four building pads at 810-840 W. Valley Parkway, immediately next to Interstate 15.

"Escondido has long been on our radar, and as a team headquartered in Solana Beach, this truly is our backyard," Brixton Capital president and chief investment officer Rob Taylor said in a statement. "We are proud to invest in this community and look forward to being a long-term partner to the tenants and residents that call Escondido home."

Phil Lyons and Vince Provenzano of Cushman & Wakefield represented Mountain Pacific Properties in the sale, while Brixton Capital represented itself.

Built in 2003, Escondido Gateway enjoys robust retail traffic driven by tenants Barnes & Noble, Michael's, Columbia Bank, Cocina Del Charro and others.

The shopping center is a well maintained, Class A property and requires minimal capital investment, Brixton said. The new owner will focus its immediate efforts on leasing the two vacant suites.

Brixton purchased the property at a significant discount to replacement cost and expects to lease the vacant suites quickly. The shopping center's current occupancy rate is 96.8 percent.

Escondido Gateway benefits from the synergy of a retail hub. Six other retail centers are concentrated in the same area, creating a robust and dynamic retail node, according to Brixton Capital.

The Escondido submarket has consistently demonstrated the fundamentals Brixton prioritizes. With a vacancy rate below 4.3 percent, excluding malls, above-average rent growth, and a supply-constrained environment where virtually no new retail is being built, the market continues to attract national credit tenants and generate strong investor interest.

"We are seeing compelling demographic trends in this market -- over 114,000 residents within three miles of the center with average household incomes of $120,000 and projected population growth through 2031," Brixton's director of investments Mike McFadden said in a statement. "We have strong conviction that Escondido will continue to attract the kind of household formation and consumer spending that supports great retail."

Escondido Gateway joins Brixton's other San Diego County retail portfolio assets: Santee Town Center, Civic Center Plaza, Polo Plaza, and Del Mar Plaza. The firm is among the top retail investors on the West Coast in recent years, with assets in several states.