Recent activity in San Diego’s Midway District in Point Loma reflects a renewed interest in capital investment in the area, and is a signal of a robust economy, said Kyle Clark, senior director at The Heritage Group.
The Heritage Group, a full-service real estate management and investment advisory firm, has been involved in multiple projects within the Midway trade area, including the recent $6.2 million sale of the Midway Village Shopping Center. The Midway District boundaries include Interstate 8 to the north, Interstate 5 to the east, Laurel Street to the south, and Rosecrans Street/Midway Drive to the west.
“The Midway District faced its challenges during the recession, including large vacancies, as well as many corresponding smaller vacancies,” said Kyle Clark, senior director at The Heritage Group. “Circuit City, The Good Guys, Tower Records, Boat US, Marine Max, Midway Fitness all closed. Now, all of the spaces have been filled and more space will be constructed to add to the inventory.”
New build-to-suit buildings include Dicks Sporting Goods, Forever 21, Old Navy, Discount Tire and Wash and Go Car Wash.
“This really speaks well for the attractiveness of this area for retailers and shoppers — and there is more on the way,” Clark said. “The effect will span from top to bottom, as this influx of new, large businesses benefits the smaller tenants in the strip centers.”
Its central location with easy access from anywhere in San Diego is one of the reasons why the Valley View Casino Center chose the location nearly 50 years ago, and why it has continued to thrive in the area, according to Ernie Hahn, general manager at Valley View Casino Center.
Valley View Casino Center, located at 3500 Sports Arena Blvd., was a juggernaut for growth and development in the Midway District when it was built in 1966 as the San Diego International Sports Arena. Valley View has invested in the building with improvements to maximize the property’s usage. The facility has ranked No. 1 in the world in gross dollars for facilities in the 10,000 to 15,000 seat range and consistently ranks in the top 10 each year.
The arena, which is managed by AEG Management, San Diego, hosts an average of 160 events per year, and will introduce the San Diego Gulls in the fall of 2015.
“We’re in the midst of our best year to date. Business is great and with the addition of the AHL Gulls, everyone is really excited,” Hahn said.
The San Diego Gulls are expected to bring an additional 200,000 people to the sports arena per year, which means that many more customers for existing businesses, Hahn said. 
“This building is operating better than it ever has with the addition of over 130 LED flat screens, new locker rooms, a new HD video scoreboard and over $10 million in improvements in the past 10 years.”
“The Anaheim Ducks are very excited to bring professional hockey back to San Diego and the Valley View Casino Center. We look forward to joining the great sports and entertainment history and culture of the city and the Valley View Casino Center,” said Ari Segal, president of business operations for the San Diego Gulls.
The Midway District isn’t without its challenges. There is a 30-foot height limit on the buildings, which attracts mostly big box retail uses. The ability to build different and significant projects in the area would be a better use of the space and draw more investment, Hahn said.
“Despite its challenges, this area will continue to improve because of its many attractive attributes, including its central location,” Hoekstra said. “The redevelopment of the Midway District will include mixed-use, transit-oriented, smart growth projects that will attract regional and institutional capital investment to this historic San Diego community.” 
Other Midway District projects The Heritage Group has been involved in include:
Ground lease and build-to-suit of the 8,000-square-foot Discount Tire on Midway Drive
Lease of the former 7,100-square-foot Tower Records building on Sports Arena Boulevard to the Rescue Mission Thrift Store
Lease of the 12,000-square-foot Sherwin Williams paint store on Sports Arena Boulevard
Lease of the 9,600-square-foot Rock Thrift Store on Camino del Rio West, off of Rosecrans
Ground lease and construction of a new car wash on Rosecrans at Cauby Street (opening soon)
Lease of the 20,000-square-foot Victory MMA gym on Midway Drive
Properties currently marketed for lease by The Heritage Group:
-Midway Village: 30,000-square-foot retail center;
-Skandia Plaza: 35,800-square-foot retail center;
-Sports Arena Square: 77,000-square-foot retail center and 16,000-square-foot industrial center.
 
Recent developments in the area:
-Midway post office: 15.68-acre site; Under contract to a developer who is planning “distribution, warehouse and office development;
-City college land: at Kemper and Kenyon streets; To be developed as multi-tenant residential;
-Former Sharp Cabrillo Hospital site: To be redeveloped into an English-language school with student housing on the upper floors;
-Old Navy and Forever 21: Sunbelt Properties is constructing a 20,000-square-foot commercial building between Home Depot and Dick’s Sporting Goods to house Old Navy and Forever 21.