Ocean Terrace, who won the El Camino Real Derby (gr. III) in March in his third start, has been retired from racing after tests revealed wear and tear in both knees. A $700,000 Keeneland September sale yearling, the son of Saint Ballado was examined at both Rood and Riddle Equine Hospital near Lexington and Alamo Pintado Equine Medical Center near Los Olivos, Calif."The test didn't show any chips or fractures, just wear and tear," said trainer Bob Hess Jr. "The wear and tear might have been the culprit in his last two starts."Ocean Terrrace ran last in the Santa Anita Derby (gr. I) and failed to finish in the Coolmore Lexington Stakes (gr. II), both in April.Bred by Damara Farm, Ocean Terrace raced for David Shimmon and William Bianco's Fog City Stable. He was retired with three wins from five starts and $160,400 in earnings. His dam, Crystal River (by Black Tie Affair), is a multiple stakes winners. Breeding plans are incomplete.