Biotech Firm Organovo Moves HQ to New 16 KSF Facility

By Alex Girda, Associate Editor

Biotechnology firm Organovo Holdings, Inc., has relocated to a larger facility in San Diego facility. Noted for its innovative three-dimensional bioprinting technology, Organovo has leased 15,539 square feet in the city’s Sorrento Mesa area.

 The new space will be almost four times as large as the company’s previous headquarters and will provide mixed laboratory and office space as well as new clean room space. Financial terms of the deal arranged with landlord Alexandria Real Estate Equities Inc. by Cushman & Wakefield Inc. on Organovo’s behalf were not disclosed.

 Organovo’s chairman and CEO, Keith Murphy, has described the new facility as “a state-of-the-art space for our team to drive innovation with our research and development initiatives and supports partnering activities with our bioprinting technologies.”

Alexandria Real Estate Equities’ San Diego-area holdings encompass about 2.6 million square feet occupied by life sciences-related tenants. Organovo’s achievements include the selection of its NovoGen MMX Bioprinter by TIME Magazine for its list of the “Best Inventions of 2010.”

Coast Income Properties Inc. Acquires Pacific Ridge Corporate Centre

By Gabriel Circiog, Associate Editor

Coast Income Properties Inc. has acquired a two-building office project in Carlsbad for $29 million, Rentv.com reports. The San Diego-based development company, founded in 1979, paid $239 per square foot to Brandywine Realty Trust for the Pacific Ridge Corporate Centre.

The 121,500-square-foot Class A project is located at 5780 and 5790 Fleet Street, in the Carlsbad Ranch office district, east of I-5 and just north of Palomar Airport Road. The project, designed by architect Brian Paul and developed in 1999 by Spieker Properties, won BOMA’s International Office Building of the Year award in 2007.

Coast Income Properties was represented by Evan August, Larry Cambra, Louay Alsadek and Roger Carlson of CBRE. The seller represented itself in the deal.

Louay Alsadek said the Pacific Ridge Corporate Centre, which was 84 percent leased when the deal was concluded, always attracted top Carlsbad tenants mainly due to its location, ocean views and design. He also specified the deal was one of North County’s largest office investment transactions in 2012.

Another notable sale took place in Chula Vista, where the 74,900-square-foot Centre Medical Plaza was sold for $24.6 million. Located at 855-865 3rd Avenue, the medical office park features one four-story and three single-story medical office buildings. The property also includes a 262-stall parking facility. The office park has 15 medical tenants in 24 suites, including Profile Institute for Clinical Research, Children’s Primary CareMedical and the State of California.

MountainWest Real Estate in partnership with Marcus & Millichap represented the seller, Centre Medical Office Plaza LLC, and the buyer.

Photo Courtesy of: www.olx.com

New Hyatt Place Opens in Vista-Carlsbad; NBTK Holdings LP Expands Office Portfolio

By Gabriel Circiog, Associate Editor

Hyatt Hotels Corporation announced the opening of Hyatt Place San Diego/Vista-Carlsbad. The new 150-room hotel is the first Hyatt Place hotel in the Vista-Carlsbad area and the seventh hotel for Hyatt in the San Diego area.

Located at 2645 South Melrose Drive, the hotel is targeting business as well as leisure travelers. It is closely located to McClellan-Palomar Airport, major business parks, restaurants, luxury golf courses, Carlsbad Premium Outlet Mall, Legoland California and San Diego Zoo’s Safari Park.

Wes Lavender, general manager of Hyatt Place San Diego/Vista-Carlsbad, said the hotel was designed for “a lifestyle, not a demographic, and as a result, we are confident that everyone from business travelers to beachgoers will appreciate the open, intuitive design, casual atmosphere and practical amenities.”

Amenities will include free wi-fi access throughout the hotel, over 1,000 square feet of high-tech meeting space and a 24/7 guest kitchen.

In the office segment of the market, the most recent transaction took place in Mission Valley where NBTK Holdings LP acquired a 26,700-square-foot office building, rentv.com reports. Located at 1843 Hotel Circle So., the three-story building is east of I-5 and adjacent to I-8. The building is fully leased and occupied by a defense contractor, TASC. The company moved into the building in 1997 and occupied 65 percent before recently expanding into the remaining space. The company is now owned by KKR investment firm.

Chuck Wasker and Mark McEwen of Colliers International represented the buyer and the seller, Marcopoulos Venture Fund III. Jeff Ryan of Ryan Real Estate Advisory and Mike Paeske with CFI assisted in the transaction.

Photo Courtesy of: www.hyatt.com

Affirmed Housing Group Completes Affordable Apartment Community

By Gabriel Circiog, Associate Editor

Affirmed Housing Group has announced the grand opening of the City Scene Apartments in the North Park neighborhood of San Diego.

City Scene Apartments features 31 affordable homes which are addressed to those who earn 50-60 percent of San Diego County’s Area Median Income. Located at 4105 Georgia Street, the affordable homes are near the center of San Diego’s newest arts and culture hub in downtown North Park.

The project was designed by San Diego architecture firm MW Steele Group with LEED certification in mind. Sustainable features include solar panels and preferred parking for carpoolers and bikers. The development features one-, two- and three-bedroom residences with certain homes offering private balconies and a below-grade parking lot. The development also includes amenities such as on-site laundry, a recreation courtyard and a community room.

When Affirmed Housing Group acquired the site, it contained a failed semi-built market rate development. The local company redesigned the failed project resulting in what is, today, the City Scene Apartments. According to President of Affirmed Housing Group, Kyle M. Hansen, “North Park’s recent renaissance has made the area a very appealing place for individuals and families to live.”

The project was a partnership between Affirmed Housing Group and U.S. Bank, the latter providing a $4.7 million construction loan. Kyle M. Hansen, executive vice president of U.S. Bank’s Commercial Real Estate Division, said “We are very pleased to continue this partnership and support Affirmed Housing Group’s quality developments.” U.S. Bank and Affirmed Housing Group previously collaborated on the 52-unit Magnolia Court in Manteca, the 229-unit Ten Fifty B in downtown San Diego and the Riverwalk in the Nestor community of San Diego.

Rendering Courtesy of: www.affirmedhousing.com

Soitec Solar to Invest $150 Million in New Manufacturing Facility

By Gabriel Circiog, Associate Editor

French firm Soitec Solar has received a SUNPATH award in the amount of $25 million from the U.S. Department of Energy to support its new solar manufacturing facility in San Diego.

The French company acquired a 176,000-square-foot manufacturing center in December to support over 300 megawatts of advanced projects throughout San Diego and Imperial Counties. Located on 14.8 acres, close to Rancho Bernardo Road and I-15, the new factory will produce Soitec’s Concentrix concentrator photovoltaic (CPV) modules. Soitec will invest over $150 million in the project which is expected to create 450 on-site jobs and more than 1,000 indirect jobs at full capacity. Soitec’s project will result in the world’s largest CPV manufacturing facility. Construction has already started and the first phase is expected to be completed by the fourth quarter of 2012.

The new high volume CPV module production facility will permit Soitec to deliver renewable energy and economic development through the expansion of its solar power plant customers across Southern California and the American Southwest. Ultimately Soitec aims to support export opportunities around the Pacific Rim.

The SUNPATH award funds will be available upon completion of contract negotiations between Soitec and the U.S. Department of Energy.

Clark Crawford, Soitec vice president of sales and business development USA said, “We are honored by this new partnership with the DOE and their support for CPV deployments in the US represented by this award.”

Photo Courtesy of: www.20years-soitec.com

BioMed Realty Trust Expands San Diego Portfolio

By Gabriel Circiog, Associate Editor

BioMed Realty Trust, Inc. has acquired two parcels of land totaling 28 acres in San Diego for approximately $47 million, excluding transaction costs. The locally based company announced that it has leased the two sites to Advanced BioHealing, Inc., a subsidiary of Shire plc, in a long term deal. Advanced BioHealing plans to construct, starting next year, over 150,000 square feet of office, warehouse, laboratory and manufacturing facilities. Future development could take place at the site located between Alere, Inc. and the Scripps Proton Therapy Center, as it can accommodate an expansion of up to a total of 800,000 square feet.

The announcements confirm the company’s commitment to invest in the San Diego market. As previously reported by Commercial Property Executive, BioMed Realty Turst started raising funds in November 2011 through a stock offering in order to purchase additional life science properties in San Diego and six other markets across the country. The REIT set the share prices at $17.92 for almost 22.6 million shares which were previously sold to UBS Investment Bank, the underwriter on the offering. Alan Gold, chairman and CEO, said at the time that the funds will be used to make a partial payment of the $750 million credit line and maintain a $600 million acquisition fund.

According to Kevin Rakin, Shire’s Regenerative Medicine President, “This new campus will give us the flexibility and increased capacity we need to develop and manufacture new regenerative medicine therapies and build our foundation for continued growth in this exciting field.”

BioMed has a portfolio valued at $12 billion, with over 12.4 million square feet of buildings across the country; 1.9 million square feet are located in San Diego.

Illustration Courtesy of: www.biomedrealty.com

Design for New 364-Room Fat City Hotel Approved by CCDC

By Gabriel Circiog, Associate Editor

The Centre City Development Corp. has approved the design for a 364-room hotel in San Diego’s Little Italy neighborhood.

As previously reported by Commercial Property Executive, architect and developer Jonathan Segal had proposed a new residential development, Fat City Lofts, for the site which is just 100 feet away from Solar Turbines. The company, which builds gas-powered turbines, opposed the project arguing that the coexistence with the proposed residential development was virtually impossible as it could attract an environmental review that could end up costing 1,800 jobs.

The new plan, proposed by GLJ Partners and Jonathan Segal, calls for the development of a six-story hotel that would incorporate the Art Deco style of the Fat City/Top’s nightclub building, The San Diego Union-Tribune reports.

Located at Pacific Highway and Hawthorn Street, the new development has the support of Solar Turbines. James Umpleby, president of Solar Turbines, confirmed the full support of the company for the two-hotel complex. He told the CCDC board the development would be “a complement to Solar on Harbor Drive”.

Even though the Fat City project now has the support of Solar Turbines, a new group opposing the project has emerged. The hotel union workers have submitted a document highlighting their objections to the project. Certain objections, such as the fact that the hotel employees would not be guaranteed health coverage or living wages, are not usually within the CCDC’s land-use responsibilities.

Following the approval of the design by the CCDC board, chairman Kim Kilkenny will decide on the required development permits.

Rendering Courtesy of: GLJ Partners

Environmental Impact of One Paseo Mixed-Use Development is Debated

By Gabriel Circiog, Associate Editor

The Carmel Valley Middle School was the center of a heated debate regarding the One Paseo mixed-use development proposed by Kilroy Realty Corporation. Residents gathered to hear the comments of the Carmel Valley Planning Board on the draft environmental impact report, according to The San Diego Union-Tribune.

While most locals agree that a mixed-use development is ideal for the site, some are still concerned about the density of the project. The proposed site, at Del Mar Heights Road and El Camino, is zoned for 500,000 square feet of office space. Kilroy Realty, however, proposes a mixed-use development that would also include (in addition to the 557,000 square feet destined for offices) 270,000 square feet of retail space, 600 housing units, and a 150-room hotel accompanied by 4,000 parking spaces. The major concerns regarding the proposed development, totaling 1.8 million square feet, have to do with increased traffic congestion and the irregularity of tall buildings in the suburban setting.

The comments of the board have been submitted to the city of San Diego for review and a final environmental impact report will be issued at a later date for review. The members of the city’s Planning Commission are scheduled to hold a public hearing before submitting their recommendation to the City Council.

As previously reported by Commercial Property Executive, so far this year Kilroy Realty has been focusing its attention on the healthcare sector in the San Diego market. In February the company sold a 253,676-square-foot portfolio of Class-A medical office buildings.

Illustration Courtesy of: www.kilroyrealty.com

Riverbend Project Sent Back to Drawing Board

By Gabriel Circiog, Associate Editor

A controversial mixed-use project along the San Diego River has been sent back to the drawing board by the Navajo community planning group, KPBS.org reports.

The Riverbend project, proposed on 23.5 acres of land in the Grantville neighborhood, between Mission Gorge Road and the San Diego River, calls for the development of 1,050 multifamily units, 30,000 gross square feet of commercial/retail space and a 2.2-acre park along the river.

Opponents of the Riverbend project have requested major changes to the plan, which they believe will increase congestion and have a negative environmental impact. The development manager of the project is Urban Housing Partners. Mike Dunham, one of the principals, said the feedback and input received from the neighborhood opposition will be analyzed and taken very seriously.

The San Diego Union-Tribune sheds light on some of the concerns regarding this project which would require amendments to the city’s General Plan, the current San Diego River Park Master Plan and the Navajo Community Plan. The current height limit for residential buildings in the region is 30 feet; however, according to the developer, in order for the development to be profitable, it requires an 85-foot height limit. Another major concern is the fact that the developer is seeking approval to grade nearly 110,000 cubic feet of earth to raise the development above the flood zone, which is believed to have some unintended consequences such as changes to the river flow, temperature changes, and potential flooding of areas around the development.

Mike Dunham expects the revised plan to be back before the Navajo planning group in July. If approved, the plan has to go before the San Diego Planning Commission and the City Council. The community is also wary because, upon approval of the plan, a precedent for future developments in the region will be created. Anthony Wagner, vice chair of the planning group, confirmed developers are hoping to build up to 10,000 new homes in the area.

Illustration Courtesy of: riverbendsd.com

Doug Manchester Proposes $200 Million Mixed-Use Development for U-T Site

By Gabriel Circiog, Associate Editor

The San Diego Union-Tribune publisher—and developer Douglas F. Manchester—propose a $200 million mixed-use development for the U-T site in Mission Valley. The city of San Diego will start preliminary review of the plan later this year, the San Diego Business Journal reports.

The City of San Diego’s project manager, William Zounes, said the public review will probably begin in June with the city’s advisory Mission Valley Planning Group, although full official plans have not been submitted yet. The development will also need to be approved by the Planning Commission and the City Council. Doug Manchester estimates the city review process will take around 18 months.

The media company’s 12.9-acre Mission Valley campus, located between Interstate 8 and the Fashion Valley shopping center, currently has a 166,257-square-foot office building and a printing plant. The new plan, as reported by the San Diego Union-Tribune, envisions a 22-story, 198-unit residential tower as well as a 10-story, 234,415-square-foot office building. The development will also include 6,470 square feet of retail space and a parking garage topped by a pool, a fitness center and tennis courts.

Perry Dealy, Manchester’s development consultant, confirmed a zoning change from the current industrial use is needed for the project, but the Mission Valley Community Plan’s mixed-use designation for the site would accommodate the new buildings.

According to the updated San Diego River master plan, a continuous bike path and jogging trail is planned along the banks of the San Diego River. As part of the campus expansion plan, Manchester would pay for his property’s portion.

The project is designed by AVRP Studios. Douglas Austin, chairman/CEO of the company, said the new office tower will have a lighthouse structure at the top which will incorporate a Times Square-style news ticker and night-time lantern.

The developer is expecting to complete construction of the project in four years.

Illustration Credits: AVRP Studios.

Gerrity Group Purchases Old Grove Marketplace in Oceanside

By Gabriel Circiog, Associate Editor

Gerrity Group has acquired the Old Grove Marketplace in Oceanside from Sea Breeze Properties LLC for $19.55 million, RenTV.com reports.

The 81,300-square-foot Oceanside retail center is anchored by Ralphs, Starbucks, US Bank and Lowes Home Improvement (NAP). Originally developed by Sea Breeze Properties LLC in 2005, Old Grove Marketplace presented a challenge for Bruce Schiff Phil Lyons of Cassidy Turley San Diego, which represented Sea Breeze Properties in the transaction. He stated that investors are typically trying to take advantage of the low interest rate environment and acquire retail centers that are free of existing debt to maximize leverage. The Gerrity Group had to assume the existing debt on the property, creating leverage of just 44 percent equity to 56 percent debt. However, the group considered the asset a valuable long-term investment with a strategic position in North San Diego County, as well as a well-anchored shopping center that is able to drive not only weekday but also weekend traffic into the retail center.

In other local news, Meritage Home is set to begin construction in northeast Oceanside
on a 92-house project, according to The North County Times.

The 76-acre development was initially known as Hi-Hope Ranch and was approved by the Planning Commission in 2006. The project was stalled following the housing market crisis, but in October Meritage bought the property and has already initiated preliminary site development work. The modified project design was unanimously approved by the Oceanside Planning Commission and construction of the model homes should start next month. With a new name, the Marisol development located at Melrose Drive and State Road 76 will feature one- and two-story homes ranging in size from 2,818 square feet to 4,460 square feet. Peter Vanek, forward planning director for Meritage Homes, said the homes will be priced in the $500,000s.

Photo Courtesy of: www.oldgrovemarketplace.com

Construction of $1B Green Palomar Medical Center Completed

By Gabriel Circiog, Associate Editor

The new 740,000-square-foot Palomar Medical Center has passed state inspection and is scheduled to open Aug. 19. Located on a 56-acre site in the Escondido Research and Technology Center close to State Route 78 and Interstate 15, the hospital building was designed by Los Angeles-based CO Architects.

The design of the building will incorporate various features such as electronic medical record-keeping and various wired and wireless technologies. The design will also permit the hospital to accommodate future advancements in technology. The emphasis on technology and sustainability, as well as the use of natural light and greenery as part of the healing process, are some of the characteristics one will encounter in the first new hospital built in North County in over 30 years.

Close to 6,000 people were involved in the construction of the 11-story hospital, which was managed by the San Diego office of DPR Construction. Construction work for the new Palomar Medical Center started in December 2007 and, upon completion, will feature a 120-bed West Tower and a 168-bed East Tower. The hospital has the capacity to expand to 600 beds in the future.

Among the services that will be relocated to the new facility from the existing downtown Palomar Medical Center are the Trauma Center and Emergency Department. The latter will have 44 treatment rooms, 19 more than are currently available at the downtown facility.

The $956 million project was financed in large part by Proposition BB, a $496-million bond measure that district voters passed in 2004.

Palomar Health is the state’s largest public health district by area and provides services to an 800-plus-square-mile area with more than 500,000 residents. The district employs around 4,000 people and is affiliated with over 800 physicians.

R&V Management Corp. Acquires 143 Condo Units in La Mesa

By Gabriel Circiog, Associate Editor

San Diego-based R&V Management Corp. has acquired 143 condominium units at Adagio in La Mesa. The $25.5 million deal was brokered by Phoenix-based Hendricks & Partners. The Adagio community was designed and developed as a 200-unit condo project back in 1984 and later was operated as an apartment community until 2005. Located at 5427 Lake Murray Boulevard, the community offers one- and two-bedroom floor plans. The gated community offers various amenities including a children’s play area, a picnic area with barbecues, state of the art fitness center, on-call/on-site maintenance and easy access to public transportation and major freeways.

Rents at Adagio Apartments currently range from $1,150 for one-bedroom units to $1,520 for two-bedroom apartments.

In other local news, San Diego Business Journal reports that Washington, D.C.-based Capitol Seniors Housing has purchased the assisted-living care community Garden Park Villas. Located in Escondido at 1342 North Escondido Boulevard, the 89-unit property was sold by Escondido Assisted Living LLC for $9.5 million. The facility was acquired with debt financing from the U.S. Department of Housing and Urban Development, with 40-year amortization at 3.47 percent interest.

Capitol Seniors Housing plans to invest in upgrading the property and changing the unit mix to 42 memory care and 47 assisted-living units. Current amenities include three community dining rooms, a game room, a spa room, a bistro, terrace and elevator access to all areas.

The facility will continue to be operated by local based Integral Senior Living.

Resmark Apartment Living to Develop Two Apartment Communities in Chula Vista

By Gabriel Circiog, Associate Editor

Resmark Apartment Living, a division of The Resmark Companies, has teamed up with ColRich to develop two apartment communities in southern San Diego County. Located in the Eastlake master-planned community in Chula Vista, the 19.6-acre development site is just south of the Olympic Parkway and Wueste Road intersection adjacent to Otay Lake. Construction began in January 2012, and the two apartment communities are expected to be completed in October 2013.

The natural topography of the site allows the development of two adjacent neighborhoods. On the western 9.5 acres, plans call for 209 residences developed as 158 two-story townhomes and 60 units in a triplex plan. Over on the 10.1-acre eastern site, a total of 218 units are planned as 158 two-story townhomes and 60 units in a triplex plan.

The triplex buildings will consist of two, two-story townhomes and a carriage style unit in the rear. The residences will range in size up to 1,482 square feet. Amenities for each neighborhood will include a central clubhouse with a fitness center, dining rooms, entertainment spaces, a yoga studio, children’s play area and an outlook pool with lounging deck overlooking Otay Lake.

The apartment communities will be managed by Lincoln Property Company, the fourth largest property manager in the U.S.

Resmark Apartment Living is an active investor and joint venture capital provider in multifamily projects in major metropolitan markets in California and the Western U.S. The company’s multifamily portfolio includes future projects such as a 157-unit townhome rental complex in the Santa Clarita Valley, a joint venture with Archstone.

Village Lindo Paseo Gets $26 Million in Financing from Wells Fargo; Westcore Properties Acquires Office Building in Encinitas

By Gabriel Circiog, Associate Editor

Wells Fargo & Co. has provided $26 million in financing to complete the construction of Village Lindo Paseo, a 287-unit housing complex at San Diego State University, San Diego Business Journal reports.

The project is developed by San Diego-based Village Lindo Paseo LP and is expected to house a total of 384 students in 97 double-room suites and 190 single rooms. Amenities will include 24-hour on-site security, a laundry area, dining facilities, a fitness center and a two-level underground parking garage.
The development is expected to create around 500 construction jobs and 20 permanent positions upon completion.

The housing complex is being constructed to achieve LEED Silver certification from the U.S. Green Building Council. Green features will include solar roof panels and ClearEdge Power’s fuel cell technology which are estimated to save $26,000 annually in energy costs, as well as over $1 million in construction costs.

Lindo Paseo LP is led by Dale Walker, Paul Denyer and Erich Aragon. They started the construction of the $40 million project earlier this year and expect to complete it in May 2013.

In other news, rentv.com reports Westcore Properties has acquired a two-story office building in Encinitas for $6.8 million. The 37,400-square-foot building is located east of Interstate 5 at 679-681 Encinitas Boulevard. The office building is 100 percent leased and the major tenants are Scripps Health and St. Katherine’s College.

The buyer was represented by Joe Anderson and Rick Reeder of Cassidy Turley, while the seller, HBTFT LLC, was represented by Strom Commercial.

Illustration Courtesy of: www.starckap.com

Dornin Investment Group Acquires Royal Oaks Senior Apartments

By Gabriel Circiog, Associate Editor

Dornin Investment Group has purchased Royal Oaks Senior Apartments, a garden-style apartment community located in San Marcos, according to rentv.com.

The 122-unit complex was built in 2003 and is operated as an age-restricted community for residents 55 and older. Slated as an affordable housing project, 10 percent of the units are dedicated to those earning 50 percent of the area median income, with rent levels set by the city of San Marcos. Amenities include a pool, game area, bistro, library and gated entrance.

Dornin Investment Group teamed up with Berkeley Point Capital to provide the funding for the purchase, through a fixed-rate, 10-year Fannie Mae execution for $12.44 million.

President of Dornin Investment Group, Chris Dornin, said the mild climate and good access to shopping and other conveniences make North San Diego County a favorable location for the targeted demographic. This purchase will be the seventh acquisition for the company in the past nine months. Its investment strategy is to capitalize on distressed multifamily opportunities in Southern California.

In other local news, Lyon Communities has announced the opening of a new, gated apartment community in Escondido. Latitude33 will feature one- to two-bedroom apartments, two- to three-bedroom townhomes and various resort-style amenities.

The new luxury gated community is in close proximity to the California Cultural Center for the Arts, the Grand Avenue street scene and nearby employment centers. Monthly rents will start in the low $1,900s for the townhomes, which range in size from 936 to 2,057 square feet, and from the mid $1,400s for mid-rise apartments.

Newport Beach, Calif.-based Lyon Communities is a real estate development and investment company established in 1988. Over the years the company has purchased over 21,000 units and it has a market capitalization of $2 billion. It has also managed the development and renovation of 12,500 units.

Illustration Courtesy of: www.lyonlatitude33.com

McCarthy Tops Out Steel Construction of New $110 Million Math and Science Building

By Gabriel Circiog, Associate Editor

McCarthy Building Companies has topped out steel construction for a new four-story Math and Science Building at San Diego Mesa College.

The 206,000-square-foot facility, located at 7250 Mesa College Drive in the Clairemont area of San Diego, was designed by Architects | Delawie Wilkes Rodrigues Barker. The ground-breaking ceremony took place in August 2011 after McCarthy disassembled the three older buildings on the site. The $110 million project is targeting LEED Silver certification by the U.S. Green Building Council and will incorporate various energy-efficient features such as low “E” glazing windows and a cool-roof that will reflect unwanted energy and reduce energy consumption.

The new building will house a greenhouse, an astronomy observation center, four floors of classrooms, laboratories, as well as staff and administrative support space. The concrete work for the new facility is expected to be completed in May.

Consultants on the project include Hope Engineering for structural engineering and EXP for mechanical and electrical engineering.

The project is being funded by the $1.555 billion Propositions S and N construction bond program. Gafcon is the program manager on behalf of the San Diego Community College District.

McCarthy Building Companies, Inc. is among the oldest and largest commercial builders in the country. The company has been constructing in the education market for around 50 years. Over 300 K-12 school projects were built by the firm across country, with a total construction value exceeding $2 billion. The Math and Science Building is the third major project McCarthy has undertaken on behalf of the San Diego Community College District, after the four-story LEED Gold certified Allied Health Building finalized in 2009 and the Miramar College parking structure and police station, completed in 2011. The latter is expected to achieve LEED Platinum Certification.

The Village at Market Creek Awarded LEED-ND Silver Certification

By Gabriel Circiog, Associate Editor

The Village at Market Creek has become the third project in the country to receive LEED Neighborhood Development approval after receiving a Silver designation under the LEED-ND rating system. The LEED-ND application process for The Village was funded through a grant awarded in partnership by the United States Green Building Council and Bank of America.

The plan calls for the transformation of 84 adjacent acres of deteriorating properties into a cultural “village” that will ultimately include residential, commercial and recreational spaces. The redevelopment aims to integrate these elements around the Euclid transit hub.

Since 1997, over 5,000 residents in partnership with the Jacobs Center for Neighborhood Innovation have helped transform the community into an economically vibrant and sustainable village. In 2010, the Village managed to generate $92.7 million in annual economic activity.

The final plan aims to create 1,000 affordable homes, over 2,000 jobs and 250 new businesses. Approximately 5,500 linear feet of wetlands are expected to be restored, and total surface area of the new construction is expected to exceed 1.6 million square feet. Jacobs Center was assisted by Global Green USA in obtaining the LEED-ND certification.

In other news, Rentv.com reports that San Diego Coffee, Tea & Spice bought a 49,000-square-foot industrial building for $3.75 million. Located at 1722 South Coast Highway, the property was acquired from Lee Enterprises Inc., the parent company of the North County Times.

The seller was represented by Todd Davis and John Orlando from Cassidy Turley BRE Commercial, while the buyer was represented by Tim Clepper of SD Commercial.

Excel Trust Acquires La Costa Towne Center

By Gabriel Circiog, Associate Editor

The retail-focused REIT Excel Trust has acquired La Costa Towne Centre, a retail shopping center in Carlsbad, for approximately $23.5 million.

Located at 7710-7770 El Camino Real, the property has around 121,000 square feet of gross leasable space and is anchored by Vons, a division of Safeway. Although the lease is in effect, the grocery store no longer occupies the space. Excel Trust released a press statement stating that “the property presents an opportunity to re-tenant and redevelop portions of the center to create additional value.”

According to Marcus & Millichap real estate investment services, San Diego is ranked fourth in 2012 in economic and retail real estate fundamentals. The firm is expecting the San Diego retail sector to outperform other Southern California markets in 2012.

While in 2011 San Diego was outranked only by Washington, D.C., and New York, in 2012—due to weaker employment growth—those markets have been overtaken by San Francisco, San Jose and Seattle. According to Marcus & Millichap, San Diego is expected to have the second lowest retail vacancy rate in the country with 4.2 percent, behind San Francisco at 3.1 percent. The projected national rate is 9.2 percent.

The La Costa Towne Centre is the largest retail sale in the San Diego market so far in 2012. The property was the third acquired this year by Excel Trust, following the purchase of the Promenade Corporate Center in Scottsdale, AZ, on January 23 and the acquisition of EastChase Market Center in Montgomery, AL, on February 17.

Logo Courtesy of: www.exceltrust.com

San Marcos High School Honored for Green Design and Planning

By Gabriel Circiog, Associate Editor

The San Marcos Unified School District has been honored by the Coalition for Adequate School Housing (C.A.S.H.) and the American Institute of Architects California Council (AIACC), for the green design and planning of the San Marcos High School.

Designed by San Diego-based school architecture firm, LPA Inc., the $180 million project calls for the expansion of classroom space by 50 percent without adding acreage. The end result will be a three-story, 412,000-square-foot facility around a central quad. Amenities such as a library reading center, student store and career center will be located on the ground floor, while the academic spaces will be housed on the floors above.

Other amenities include campus-wide WiFi coverage and green features include high efficiency HVAC systems, energy efficient lighting, low-flow plumbing fixtures, stormwater management techniques, and a clean roof. The design of the roof will allow the addition of photovoltaic panels in the future. Due to a close collaboration with San Diego Gas & Electric, the project is set to be granted $300,000 in energy efficient design incentives, from Savings by Design.

The project is funded by a $287 million bond measure—Proposition K—and Lusardi Construction will deliver the project following a lease-leaseback arrangement.

The Coalition for Adequate School Housing was established in 1978 to promote, develop and support state and local funding for K-12 construction. Currently CASH incorporates over 1,500 school districts, county offices and private sector businesses. CASH has sponsored or supported over $52 billion in statewide school bonds since 1982.