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JH Real Estate Partners Buys San Carlos Shopping Center for $35 Million

10 Mar 2014, 2:25 am

By Alex Girda, Associate Editor

 In a $35 million deal, JH Real Estate Partners has acquired the San Carlos Shopping Center, a 125,700-square-foot retail center in the Lake Murray area. The seller, an unidentified East Coast investor, had owned the asset since 2006.

Located on the Navajo Road exit of the 125 Freeway, the property has a eclectic tenant roster that includes such national brands as Walgreens, LA Fitness, Chase Bank and Starbucks.

According to rentv.com, the facility currently operates at an occupancy rate of around 81 percent. Around 25,000 square feet are currently available for lease, which could accommodate two new junior anchors. The new owner will look to bring some improvements to the property, in order to reposition the shopping center and boost its revenue.

In recent years, an already well performing retail market has tightened further, considerably outperforming the national average since the end of 2013. According to Marcus & Millichap Real Estate Investment Services shows that at the end of 2013, the San Diego Metro area had a projected average vacancy rate of around 4.6 percent, compared to the 7.1 nationwide average rate.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc. at marcusmillichap.com

Alliance Diversified Buys Pyramid Building in Miramar, Plans Makeover

3 Mar 2014, 10:46 pm

By Alex Girda, Associate Editor

One of the area’s most distinctive office properties recently traded hands as Alliance Diversified Holding, .L.L.C. paid $13.6 million for the Pyramid Building in Miramar.  The seller was APEX 1 & 2 L.P. Voit Real Estate Services arranged the sale;  a team consisting of Brandon Keith, Ryan Bracker and Bob Brady represented the seller.

Located at 7310 Miramar Road, the six-story pyramid-shaped building was initially part of the Miramar Metroplex and offers tenants a total of 131,218 square feet of  space.

Alliance Diversified reportedly plans to rebrand the property as the San Diego Innovation Center and inaugurate improvements designed to attract technology-related tenants.

When the Pyramid Building was completed in 1992, critics cited the unusual design by architect N. Charles Slert. Alliance Diversified now aims to “bring this dynamic property to its full potential as a creative shell in which creative companies will thrive”, said Ted Eldredge, president of Alliance Diversified, in a statement.

Kaiser Permanente Kicks Off $900M Hospital in Kearny Mesa

23 Feb 2014, 12:45 am

By Alex Girda, Associate Editor

Boosting San Diego’s cachet as a leader in medical care, Kaiser Permanente broke ground Feb. 14 on a $900 million medical center in Kearny Mesa.

Kaiser Permanente San Diego Central Hospital, the Oakland-based healthcare provider’s second in San Diego and its first new medical center in 40 years, will be located at 5201 Ruffin Road near Clairemont Mesa Boulevard.

According to information on the website of Hensel Phelps, which is handling construction, the seven-story, 566,000-square-foot main hospital building will offer 321 beds.

Also part of the complex will be a 38,000 square-foot energy center, a three-story, 55,000 square-foot support building and a  parking structure with 1,479 spaces. Kaiser may eventually expand the hospital’s capacity to 450 beds.

Previously, the project’s 19-acre site served as the location for several San Diego County departments, including the Registrar of Voters. In December, the registrar’s office relocated to a the recently completed County Operations Center at 5600 Overland Ave. in Kearny Mesa.

CO Architects is designing the facility, which Kaiser intends to submit  for LEED Gold certification.

Rendering courtesy of coarchitects.com

Venta, Pathfinder JV Buys Homewood Suites Hotel in La Quinta

14 Feb 2014, 12:18 am

By Alex Girda, Associate Editor

A joint venture of Vesta Hospitality and Pathfinder Partners L.L.C. has acquired a 129-key Homewood Suites hotel in La Quinta. Washington, D.C.-based Vesta, a hotel management and development company, and Pathfinder, a local real estate investment firm specializing in value-add opportunities, had previously handled management duties. Terms were not disclosed.

A $1.8 million renovation is planned for the newly acquired asset, which was built in 2007. Guest amenities include a business center, meeting rooms, a swimming pool, fitness facilities and dining facilities. Noted local institutions include the Berger Foundation,  JFK Memorial Hospital and the Betty Ford Center.

Metropolitan San Diego is drawing increasing attention from hotel developer. The SDTA Hotel Database projects that by the end of the year, 10 new hotels will have been completed since the summer of 2013. That translates to more than 800 new guest rooms added last year and nearly 1,000 more keys in 2014.

Image courtesy of homewoodsuites3.hilton.com

Starwood Hotels Plans 140-Key Aloft for Rancho Bernardo

5 Feb 2014, 5:02 pm

By Alex Girda, Associate Editor

Rancho Bernardo, which has established a reputation as one of San Diego’s high-tech magnets in recent years, is also commanding attention from the hospitality sector. Starwood Hotels & Resorts Worldwide plans a 2016 opening for a 140-key Aloft. Upon completion, the property will be the sixth Aloft in California.

The hotel will be located at the entrance of the Rancho Bernardo Corporate Park, where Sony, Hewlett-Packard, BAE Systems, Northrup Grumman, Teradata, Cymer, Millennium Laboratories, and other companies have regional offices. Aloft Rancho Bernardo will feature the brand’s signature loft-style rooms, 3,000 square feet of meeting space, a rooftop “Splash” swimming pool, a fitness center, underground parking, and Smart Check-In, a mobile service that allows guests to bypass the front desk.

Brian McGuinness, Starwood Hotels’ senior vice president of specialty select brands, said that the new facility will be “a great match for this bustling, high-tech hub and (will) likely emerge as a leading choice among savvy travelers and young professionals.”

Close to downtown San Diego and the San Diego International Airport, the Rancho Bernardo location offers entertainment and leisure options that include the Bernardo Winery, San Diego Zoo Safari Park, shopping, several golf courses and a variety of outdoor activities.

Starwood Capital Taps Cassidy Turley To Manage 1 MSF Office Portfolio

23 Jan 2014, 4:19 pm

By Alex Girda, Associate Editor

After completing the blockbuster $327 million acquisition of a San Diego-area office portfolio from Kilroy Realty Corp., Starwood Capital Group has tapped Cassidy Turley to manage the properties.

Totaling 1.1 million square feet, the 12 properties are located in two of San Diego’s best- performing submarkets: eight in Rancho Bernardo and  four Sorrento Mesa.

At closing, the assets were about 9 percent vacant, well below the 15.8 percent average Class A vacancy rate in San Diego reported for the third quarter by Marcus & Millichap Real Estate Investment Services Inc. San Diego’s office market has continued to keep pace with the national decline in Class A vacancy, Marcus & Millichap confirmed.

For Cassidy Turley, the assignment is the largest to date for the firm’s southwest property management unit since its launch in 2010, rentv.com
noted. The Starwood commission brings Cassidy Turley’s local property management portfolio to about 6 million square feet and 35 million square feet in California and Arizona.


Chart courtesy of Marcus and Millichap Real Estate Investment Services at marcusmillichap.com

Math+Science Complex Completed at San Diego Mesa College

11 Jan 2014, 8:02 pm

By Alex Girda, Associate Editor

Last year ended with the completion of one of San Diego’s largest new educational facilities: the $109 million Math+Science Complex at San Diego Mesa College.

Also the college’s largest project to date, the four-story facility will provide classrooms, laboratories, faculty space and administrative support space for science and mathematics students when it opens this spring.

The 206,000-square foot project is the first building in the San Diego Community College District to be delivered through a combination of design-build, design-assist and multi-prime construction management methods.

McCarthy Building Companies Inc. used structural steel, concrete shear walls and an exterior curtain wall in the project’s construction. Funding was provided mostly by Propositions S and N construction bonds.

Designed by  Architects | Delawie Wilkes Rodrigues Barker, the Math+Science Complex features contemporary terrazzo flooring, stainless steel railings, aluminum wall panels and precast concrete stairways. The project is a candidate for LEED Silver certification. Sustainable features include recycled or renewable resources, such as the caramelized bamboo used for the building’s wood surfaces.

Lowe Wraps Third Phase of $500M County Campus in Kearny Mesa

13 Dec 2013, 3:53 pm

By Alex Girda, Associate Editor

In a milestone for a $500 million office county office campus in Kearny Mesa, Lowe Enterprises has completed the project’s third phase, a 118,500-square-foot headquarters for the Registrar of Voters. The LEED Gold-certified building will house staff offices, election ballot processing equipment and warehouse production space, as well as an art installation.

When complete, the 47-acre campus on Overland Avenue will encompass more than 1 million square feet of facilities for San Diego County.

 The second phase, completed in August 2011, consists of two four-story office buildings totaling 150,000 square feet, a 15,000 square-foot, LEED Platinum-certified conference center and a cafeteria.

Phase one debuted in October 2010 and includes two 150,000-square-foot office buildings plus a seven-story, 1,000-space parking structure. Those buildings earned LEED Gold certification.

In addition to Los Angeles-based Lowe, the project development team comprises RJC Architects, Suffolk Roel Construction and Project Management Advisors. The county Department of General Services oversees the project on behalf of the Board of Supervisors.

Image courtesy of loweenterprises.com

Ballast Point Brewing Inks 107,000-SF Lease with HG Fenton in Miramar

29 Nov 2013, 11:09 pm

By Alex Girda, Associate Editor

 As metropolitan San Diego’s residential picture improves, the industrial market is also attracting renewed activity. Ballast Point Brewing and Spirits, a local craft brewer, signed a 15-year lease for 106,584 square feet at 9045 Carroll Way in the Miramar submarket. At $16 million, the value of the deal is one of the largest of its kind in the area this year.

Ballast Point will use the space as its main brewery, bottling and canning facility and plans to start production there by next summer. Voit Real Estate arranged the deal for Ballast Point and HG Fenton, the property’s owner.

San Diego’s industrial market appears positioned for growth through 2014, according to research by CBRE Group Inc.

Current average prices of about $12.60 per square foot could rise to nearly $13 per square foot by the third quarter of 2014. During the next 12 months, the vacancy rate could dip 70 basis points from its current average of slightly more than 8 percent, according to CBRE’s projections.

Chart courtesy of CBRE Global Investors at cbre.com

Oceanside M-F Asset Commands Record Per-Unit Price

19 Nov 2013, 6:27 pm

By Alex Girda, Associate Editor

Setting a new record for Oceanside , a 221-unit rental townhouse property there has traded for $366,516  per unit.

In an $81 million deal, a joint venture of TruAmerica Multifamily and Guardian Life Insurance acquired the asset, named Piazza d’Oro, from ConAm Group, the San Diego Union-Tribune reported.

Located on a 14-acre site along the 78 corridor at 3402 Piazza de Oro Way, the upscale rental property was acquired by ConAm from K. Hovanian Homes, its original developer. K. Hovnanian had envisioned the project as a for-sale community, but stepped away from it after the recession hit.

According to the Union-Tribune, rents at Piazza d’Oro run between $2,250 to $2,550, and unit footprints range between 1,586 and 1,704 square feet. Ten units were still vacant when the transaction closed.

Image courtesy of piazzadorotownhomes.com

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