The former Rite Aid property in Ocean Beach has been sold for a cool $12.6 Millions. The 1.66 acre site at 4840 Niagara Avenue has been a tempting plum to pluck for months since Rite Aid closed and now it has happened. The retail building — which used to be a Mayfair market before Rite Aid — is 20,155-square-feet.
One of the largest commercial real estate and investment firms in the country — if not the world — CBRE — facilitated the sale, with agents from CBRE (Chase Bank Real Estate) representing both the seller and the buyer in the transaction.
At this moment, we don’t know who the buyer is, but we do have a call into the CBRE media agent listed in the recent announcement dated Jan. 28, 2026.
A senior vice-president of CBRE, Reg Kobzi, was quoted in the announcement:
“This transaction underscores the enduring appeal and scarcity of well-located, parking-rich retail assets in San Diego’s coastal communities. Big-box retail opportunities like this former Rite Aid with on-site parking in Ocean Beach are extremely rare, reflecting strong investor confidence in the area’s fundamentals and tenant demand.”
A vice chair stated:
“This was a highly competitive transaction, and we were pleased to deliver a tailored financing solution that aligned with the buyer’s long-term vision for the property. Our ability to secure favorable terms reflects strong lender confidence in San Diego’s coastal retail market and the strength of this asset.”
Also in the announcement was this choice remark:
The site also benefits from its location within the Complete Communities Housing Solutions zoning overlay, allowing for high-density multifamily development and mixed-use opportunities. Its proximity to major employment centers in downtown San Diego, Mission Valley, and the growing life sciences and technology hubs along the Interstate 5 (I-5) and I-8 corridors further enhances its strategic value.
A loyal Rag reader tipped us off 2 days ago — we had heard rumors and had begun looking into a possible sale — and he told us:
I live a half-block away and in the past couple of days noticed a minor flurry of activity on the site, primarily people wielding clipboards. A group of four people who I spoke to yesterday in the front parking lot (I made a point of introducing myself) said that they were prospective tenants. (They didn’t say who they represented, much less if what they told me was true.) Today, a man I saw- pacing off the perimeter of the property and also carrying a clipboard–told me that he was a clean-up person who had been hired by the new owner. That’s what really tipped me off!
So, this “flurry of activity” could mushroom into a major new mixed-use housing and commercial project in the neighborhood. Many OBceans now realize that Mayor Gloria’s Complete Communities is not a friend of Ocean Beach – which will mean many of us will be watching what happens to this huge site.
If this guy’s statement is accurate, “said that they were prospective tenants,” it tells me the plan is not to redevelop the place but to lease it out. Someone heard a while back that Sprouts might open a place there. But, I have to admit, the “complete communities” language is concerning.
Great spot for a housing project … wouldn’t displace any existing housing, not a historic resource, new affordable units, + could put a bunch of new customers within walking distance of struggling business along Newport. What would be “concerning?”
What is concerning, Tanner, is that the new owner(s) will try to use the bankrupt Complete Communities plan to undermine OB’s character without adding any new affordable housing. Complete Communities does NOT mandate or guarantee affordable housing. (The new owners may even think the OB Pier is still open — they were told that in enticements.)
What does “undermine OB’s character” mean specifically?
Ah don’t know, Pete. You used to live in OB and was involved in local OB planning. so you tell me. Does OB have character, a character, or multiple characters? (Ah know where you’re trying to go on this, but not taking the bait.
My basic point is that unless affordable housing is built into whatever project the new owner wants to create, and unless it keeps the 30 foot height limit, then it’s out of character.
Using numbers from other large development in San Diego and websites for national developers, you could put 800 units there easily with the “waivers” and “exemptions.” Probably a ministerial permit. Try getting out of OB in the morning then. All the amenities, beach, nearby restaurants and bar, and the Ocean Beach charm added for-free bonuses.
Pete. Why is your image icon using the OB Planning Board logo? I think you should update that since you are not speaking for the planning anymore. It could be confusing to readers. Or maybe this is something that Frank has control over?
No, I don’t have control over individual avatars, just the generic one. So, yes, that’s Pete using the OBPB icon, but maybe it’s from a former life when he was chair, and our program recognized his name and threw it in there. I’ll check with the tech desk.
Shhhhhh. Don’t even put that out there.
Frank, every single new multifamily anything that gets built in San Diego has to provide 10% affordable housing or pay a huge in lieu fee, before one even considering additional affordable units that Complete Communities can provide. https://www.sandiego.gov/development-services/forms-publications/information-bulletins/532 I agree that Complete Communities could / should require more for what it gives but do not see what is “concerning” about the potential for a few new neighbors there to support local businesses.
So, if 50 new units are built, that means only 5 are affordable. Wow. This is what’s concerning – insufficient affordable.
I’m all for affordable housing and developments sized in proportion to the neighborhood. But why the insistence on affordable housing 3 blocks from the beach? Ocean-adjacent is expensive because there isn’t enough coastline for everyone to have it. Offering affordable units 3 blocks from the beach is just virtue signaling so developers can to exploit people’s good intentions to make explosive profits. Instead, offer better incentives to build lots of affordable housing on more reasonable real estate that’s accessible to everyone.
Well, if it’s within 1/4 mile of a Transit Priority Hub, which I gather a Rapid Bus route is, then it could be 7 stories. No environmental review, no parking, no open space requirements. SB79 is Complete Communities on steroids. This is yet another authoritarian move coming out of Sacramento at the expense of local control.
A good friend had suggested to me that the Rite Aid site would be an obvious CCHS building site. Looks like she is right about Rite Aid. Note that the article already states the site is in a CCHS zone, even though the city has not voted to approve Package A. I wonder how the buyers know what the vote will be?
Looks like local government is colluding with big money investors!
All the more reason to get all OBCEANS INVOLVED in the protest against the new Package A which takes away the protection, (based on historic status ),of Ocean Beach, AND ONLY OCEAN BEACH, from Complete Communities overbuilding high density apartments.
We are the underdogs fighting against a Goliath government that has the power, the money, and a cue just waiting to begin building. Our whole city is under seige, and building is happening now with NO infrastructure. That means unsafe congested streets, no parking, and for the entire Peninsula NO safe evacuation plan. Way too many people are being stuffed into small apartments on this peninsula cul-de-sac we call Ocean Beach, Point Loma, Sunset Cliffs. For more information about the Feb 24th meeting and vote on Package A go to https://coastal-caretakers.com/
Seems like a perfect property for the only pharmacy accessible for residents of Ocean Beach. Practically move-in ready and already zoned!
So, Walgreens on Midway and Rosecrans is going to be the closest drugstore, a good 3 miles away?
Because the Politico-Corporate High Density money machine always sells the “walkability” con to the public as being the rationale for eliminating reasonable parking requirements; can any of the “highly dense” dip-chits explain how developing hundreds of overpriced luxury apartments will make for a “walk-able” Ocean Beach by eliminating the only drugstore for 3 plus miles?
I always thought the Farmer’s Market was a healthy, and quaint alternative, now it’s going to be critical infrastructure!
Isn’t the CVS a drug store?
Stop with the facts. They don’t work in the USA any longer.
Reply meant to GML with his crazy CVS being a pharmacy comment. No facts allowed!
This is a call to action to OB residents (and all of us) to organize a powerful community response to any effort to overdevelop this parcel, and to oppose any effort to build an oversized, unattractive, unaffordable multi story apartment complex with little or no parking, inadequate setbacks, and little or no green space. This is a really important issue and you will have a support of groups like Neighbors For A Better San Diego and other community groups that have pushed back with some success against these projects. We are here to help.
Mateo, there is a walkable pharmacy already located in Ocean Beach. It’s the CVS which is at Santa Monica and Cable, about 3 blocks away from the old Rite-Aid location.
For those on Medicare and having to purchase a Drug Policy, Walgreen’s may be the most economical option. Having only one drug store in town is probably not the best, like having only one Optical store….what if there was only one bar or head shop or tattoo parlor?? Plus CVS hours are limited and the lines are usually long IMO. I miss Rite Aid and the great people that worked there.
My bad Randi, I stand corrected. With all of the rubber stamp approved monopolizations and corporate consolidation I seem to have forgotten that it was the CVS crowned the drugstore monopoly cash-cow.
Regardless, it is not a great plan to eliminate parking requirements while increasing density, exponentially, by eliminating pharmacies and access to grocery stores, in our “walkable” neighborhoods. So down to the lone drugstore for now… Then only Peoples for groceries… CVS will probably itself be closed by the corporate office for “underperforming.” Wasn’t the Target closing announced because the store is underperforming?
I think it’s very important that any organizing that will help assure the voices of OB residents are heard on any proposal for large-scale development at the Rite Aid site be done by one or more Ocean Beach groups and/or individuals who live there and have the skills and credibility to lead this effort.
It’s also very important to demand now that Council Member Jen Campbell and the Mayor’s office, get involved in this issue and listen to the community’s concerns.
I would also put this issue directly to all District 2 City Council candidates, and get them on-the-record at the next candidates’ forum (or sooner), about their position on the future of the Rite Aid property.
This property is currently protected from development because the Ocean Beach Historic District is still actively protected from development as a Historic resource “district.” That will all change on February 24, when the city council votes to remove that protection. All historic Districts get protection “with the exception of” Ocean Beach, and one other, the Asian Pacific District directly across the street from the downtown Convention Center. This still-unvoted problem is not mentioned in the CRBE description. Put that date on your calendar, and plan to make the trip (remember, rapid transit is no problem either….). More information later.
We all know where this is likely going. The city keeps entertaining proposals to build high density housing with absolutely no regard for basic infrastructure. Besides maintaining a neighborhood’s character, what happens when there is an evacuation (the roads are already at capacity during rush hour) or the electrical grid is maxed out? City planning is a valid process that should not be carelessly waived aside with the flimsy excuse of “solving the housing crisis”. We all know that if the city were earnest about providing long term housing, they could ban STVRs and immediately free up thousands of units (in convenient, desirable areas without overwhelming existing infrastructure).
Is it true the developer also purchased the old Union Bank lot as well?
What is a good way to track the progress of the proposed project through the planning and building process?