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San Diego Submarkets Continue Strong Showing as Office, Industrial and M-F Assets Trade

17 Jul 2014, 2:51 pm

By Alex Girda, Associate Editor

Although the number of blockbuster sales is relatively modest in metropolitan San Diego, its submarkets are generating a steady stream of transactions. An office campus in Del Mar Heights, an industrial asset in Otay Mesa and a multifamily complex in Imperial Beach all traded hands this week, underlining the market’s appeal to expansion-minded occupants and to investors.

Houston-based Lionstone Investments acquired Torrey Reserve West, a three-building office campus in Del Mar Heights. The two-story buildings total 118,030 square feet of space , as well as surface and structured parking.

The property was about 90 percent occupied at the time of the transaction, outperforming the market average. With asking rents on the rise, Lionstone will look to further boost occupancy. Del Mar Heights is one of the county’s best- performing submarkets, currently featuring the highest rental rates in the area.

The industrial deal was completed by Niceride 1 L.L.C., which paid  JJB Silverhawk and VCH No. 1 about $8.15 million for an asset in Otay Mesa. The deal was brokered by  Cassidy Turley. Located in the master-planned Siempre Viva Business Park at 8851-8877 Kerns St., the building totals 115,290 square feet. The building will become the new corporate headquarters of Otay Mesa Leasing, which signed a 10-year lease. The company supplies construction and industrial equipment in Southern California and Mexico.

On the residential front, Kruetzkamp Family Trust recently acquired the Century Arms Apartments in Imperial Beach for $3.6 million. The 22,800-square foot asset, which is fully occupied, includes 14 one-bedroom units and 16 two-bedroom apartments. Built in 1977, the asset is located at 1471 13th St. in Imperial Beach. The deal was arranged by Colliers International on behalf of the buyer and the seller, Kromydas Family Trust.



HCP Buys Torrey Pines R&D Building; Ariel Suites Announces Trio of Commercial Tenants

10 Jul 2014, 4:31 am

By Alex Girda, Associate Editor

San Diego’s real estate market has once again recorded an active week. Health Care Properties Inc. recently paid $43.7 million to Angelo, Gordon & Co. for a Torrey Pines research and development office property. The deal was arranged by CBRE Group Inc. representatives Ryan Egli and Hunter Rowe, The San Diego Business Journal reports.

Located at 11099 N. Torrey Pines Road in Torrey Pines Science Park, the building offers 92,479 square feet of office space. At the time of the transaction, the property was around 93 percent under contract. The building’s tenant roster features names such as DermTech International, Amicus Therapeutics Inc., COI Pharmaceuticals Inc. and Monsanto LLC.

Meanwhile, at the corner of Beech Street and Kettner Boulevard in San Diego, the Ariel Suites apartment tower is taking shape. Scheduled for completion next year, the 22-story residential tower designed by AVRP Studio has reportedly secured three tenants for its commercial space.

Mexiterranean Hospitality L.L.C. has leased 4,650 square feet of space for ten years for a restaurant featuring Baja Mediterranean-style cuisine, while Pan Bon, a bi-level restaurant, will occupy 6,500 square feet for its wholesale operations. The third retail tenant, a Hanson’s Market organic grocery, will take 8,500 square feet.  

Image courtesy of avrpstudios.com



Scripps Memorial Hospital Encinitas Unveils $94M Expansion

3 Jul 2014, 2:15 am

By Alex Girda, Associate Editor

Scripps Memorial Hospital Encinitas in North County recently marked the completion of $94 million expansion on July 1 with the grand opening of the Leichtag Foundation Critical Care Pavilion. The project added a the new emergency department and inpatient rooms along with other improvements. The new facility is named after Leichtag Foundation, a local philanthropic organization and key contributor to the project.

As part of the expansion, the hospital is adding the 72,321-square-foot Leichtag Foundation Critical Care Pavilion, as well as a new central energy plant, new medical imaging technology and various infrastructure improvements on the premises.

The new building’s first floor includes a 26-bed emergency department, with all private rooms. Two rooms double as resuscitation facilities, and four can serve as isolation rooms for patients with suspected airborne illnesses.

The second floor features 36 private recovery rooms  that will help cut patient waiting times in the emergency department. New imaging technology made available at the facility includes MRI, CT scanning and digital diagnostic X-ray units.

The first phase of the expansion of Scripps Encinitas included the development of 884-space parking facility that was completed in 2011. The recently completed second phase also includes $6 million in public infrastructure improvements.

Image courtesy of scripps.org



DRA, Cypress Pay $41M for Sorrento Mesa Office Portfolio; NBC 7 Seals Move to Kearny Mesa

26 Jun 2014, 3:29 pm

By Alex Girda, Associate Editor

In yet another busy week for San Diego office investment market, details emerged of two deals totaling $50 million in value.

In the larger of the two transactions,  DRA Advisors L.L.C. and Cypress Office Properties L. L.C. acquired four properties in the Sorrento Mesa submarket from TA Associates Realty for about $41 million.  The properties total 190,200 square feet of office space, all of it under contract.

Included in the portfolio are 5910 Pacific Center (three stories, 50,900 square feet);  Pacific Heights Plaza (two stories, 51,000 square feet); and 10020 and 9980 Huennekens Street (88,000 square feet). The new owners plan upgrades to such elements as common areas to further boost the assets’ position in the Sorrento Mesa submarket.  Cassidy Turley Executive Managing Director Rick Reeder and Managing Director Brad Tecca arranged the transaction on behalf of the seller, rentv.com reports.

Also announced last week was the $9.6 million sale of 9680 Granite Ridge Drive in Kearny Mesa to KNSD Granite Ridge L.L.C., an affiliate of NBC 7 San Diego. The 52,347-square-foot building (pictured at right) will become the station’s new headquarters in 2016 after it leaves its current home at 225 Broadway in downtown San Diego.

The  building will provide studio and administrative facilities for the station, which will occupy the space after improvements are complete, according to a statement. Colliers International arranged the acquisition for the buyer.



Sundt to Manage Construction of Science Building at SCCD’s National City Campus

18 Jun 2014, 9:14 pm

By Alex Girda, Associate Editor

Taking a crucial step toward starting work on a new science building on its National City campus, the Southwestern Community College District has selected Sundt Construction to manage the $15.3 million project.

Designed by Johnson Favaro architects, the two-story, 25,000-square-foot facility will provide laboratory space for the college’s chemistry, biology, microbiology and anatomy programs.

Also part of the project is the renovation of 10,000 square feet of office space that will be occupied by the college’s Small Business Development Center and Contract Opportunities offices. Construction is scheduled to begin in July 2015 and to be completed in 2017.

Sundt’s other recent  higher education projects in the state include the three-year-old Social Sciences and Management Building at the University of California’s Merced campus (pictured at right) and a $59 million research facility that opened in 2013 at the UC Davis School of Veterinary Medicine.

Word of Sundt’s selection by the community college district came a few days after Sundt had announced the addition of five new team members to its San Diego office. Amber Simonson and Rudy Teh joined as senior project engineers, Thomas Lopez came on board as a project engineer, Ron Eldridge will serve as a senior project superintendent and Tom Oliver is a new project superintendent.  

Image of UC Merced Social  Sciences and Management Building courtesy of sundt.com

 

 

 

 



Port of San Diego To Seek Developers for Waterfront Hotel in Chula Vista

11 Jun 2014, 12:34 pm

By Alex Girda, Associate Editor

The Port of San Diego plans to issue a request for qualifications this month for development of a resort hotel that would anchor the Chula Vista Bayfront master plan.

To be located on the 535-acre former site of the South Bay Power Plant, Chula Vista Bayfront would rise on one of the largest remaining waterfront development sites available in California. The port is seeking teams qualified to develop a large-scale, convention-oriented hotel and resort. Jones Lang LaSalle Inc. serves as the port’s lead adviser on the project.

“With an improving U.S. economy and predicted increases in business and leisure travel, Chula Vista’s unique location on San Diego Bay is sure to attract strong interest from the development community,” said Chula Vista Mayor Cheryl Cox in a statement. “Chula Vista and the Port have cleared the way to create a shovel-ready project on prime bayfront property.”

According to a report commissioned by the San Diego Tourism Authority, the city’s overnight visitor volume will increase 1.8 percent per year on average for the next four years. While annual hotel room demand will increase more than 2 percent annually for the next four years, supply will not keep pace, the report adds.

Around 200 acres of parks and open space will be part of the project. Chula Vista Bayfront will include a signature public park, extensive walking trails, interpretive signage and shoreline promenades. The plan also includes marina improvements that would create a commercial harbor including retail space and dining near mixed projects planned by Pacifica Companies.

Image courtesy of chulavistaca.gov



Cornerstone Real Estate Advisors, Hammer Ventures Make Big Buys

5 Jun 2014, 1:00 am

By Alex Girda, Associate Editor

Cornerstone Real Estate Advisors L.L.C. and Hammer Ventures are the latest investors to make major acquisitions of industrial and office assets in metropolitan San Diego.

 Cornerstone paid $57,4 million to become the new owner of the North County Corporate Center, which comprises five industrial buildings located on 26 acres at 990 and 995 Joshua Way and 2750, 2760 and 2765 Progress St. Totaling 493,900 square feet of industrial and office space, the asset commanded about $117 per square foot.  The Los Angeles office of Colliers International represented both Cornerstone and the seller, JPMorgan Chase.

Completed in 1999, the property is approximately 90 percent leased to such tenants as Jeld-Wen, John Deere Water and CDTI. Jeld-Wen, which occupies about approximately 180,000 square feet, is the largest tenant.  Around 10 percent of the space, amounting to some 40,000 square feet, is available; Cassidy Turley handling the leasing.

The Torbati Building in downtown San Diego (right) was purchased by Hammer Ventures from 625 Broadway Holdings L.L.C. The local office of Colliers International represented Hammer in the acquisition of the 223,000-square-foot, 14-story building, which was completed in 1925; the seller represented itself.

Image: The Torbati Building at 625 Broadway, San Diego



NorthMarq Capital Provides $52 Million in Financing for San Diego M-F Complex

29 May 2014, 4:14 pm

By Alex Girda, Associate Editor

NorthMarq Capital recently provided $52 million in financing for the Tierrasanta Ridge Apartments in San Diego. Marty Meagher and Gardiner Champlin, both senior vice presidents and managing directors at the firm, arranged the financing, which is based on a 10-year term and 30-year amortization schedule and was funded through the provider’s AmeriSphere Fannie Mae DUS platform.

Tierrasanta Ridge Apartments is located at 5410 Repecho Dr., south of Claremont Mesa Boulevard and just east of I-15. The 356-unit community includes a variety of environmentally friendly features, such as a solar energy system that supplies 70% of common-area electricity, irrigation controllers with on-site weather stations, and landscaping that emphasizes drought-tolerant native Californian and Mediterranean plants. Other sustainable elements are low-flow shower heads and toilets, high-efficiency laundry rooms, a community recycling programs, and a pool and spa heated by solar energy.

Tierrasanta Ridge Apartments offers five different floorplans ranging in size from 650 to 957 square feet. The units include one-bedroom, one=bathroom,  two-bedroom, one-bathroom and two-bedroom, two-bathroom floor plans.

NorthMarq’s Meagher and Champlin team also recently arranged financing for residential properties in San Bernardino and Dallas. The company provided $16.1 million for the Creekside Village Apartments, a 304-unit affordable housing community in San Bernardino, and $6.35 million for the Atera Apartments, a 380-unit apartment property in Dallas,
rentv.com reports.

Photo courtesy of tierrasantaridge.com



Vista, Sorrento Mesa Industrial Assets Fetch $75M in Separate Deals

22 May 2014, 3:47 am

By Alex Girda, Associate Editor

In a great week for the San Diego industrial real estate market, two properties traded hands in a separate deals for a combined total of more than $75 million. In the larger of the two transactions, Cornerstone Real Estate paid  $57.6 million for  an asset in the Vista submarket, while a Sorrento Mesa industrial building was acquired by Colorado-based Alliance Commercial Partners LLC.

Cornerstone’s new acquisition,  North County Corporate Center, is a 34-acre industrial campus at Progress Street and Joshua Way. Completed in 1999, Its buildings total 493,898 square feet San Diego Business Journal reported. The seller, an affiliate of JPMorgan Chase & Co., was represented in the transaction by Cassidy Turley, which also represented the buyer.  

The 121,496-square-foot  property acquired by Alliance Commercial in Sorrento Mesa is fully leased to Russell Sigler Inc. for the next three and a half years. Completed in 1993, the property includes about 10,000 square feet of office space.  

According to Colliers International, only five industrial deals valued at $10 million or more closed in the San Diego market during the first quarter. Two of those deals involved assets in Vista. For the second quarter, Colliers’ data points to declining vacancy, higher net absorption, little new product and higher prices. Vacancy ranges from 3.9 percent in the I-15 Corridor to 8 percent in North County. For R&D facilities, vacancy rates vary from 9.9 percent to 12.7 percent.

Chart courtesy of Colliers International at

www.colliers.com

 

 



Regent Properties Buys Carlsbad Office Building; Legacy Signs AltheaDx to Torrey Pines HQ

15 May 2014, 3:36 am

By Alex Girda, Associate Editor

In a $16 million deal, Regent Properties recently acquired Atlas at Carlsbad, a 246,00-square-foot office property located north of Palomar Airport Road and west of Melrose Drive at 5909 Sea Otter Place.  Regent Properties acquired the property from W.P. Carey Inc.with the help of Cassidy Turley Managing Directors Dennis Visser and Aric Starck. The latter also represented the seller.

The new owner has reportedly lined up a number of improvements and modifications for the property. Regent Properties will focus on renovating the interior, but will also add new landscaping, additional parking spaces and other site work, rentv.com reports.

Meanwhile,  Torrey Riidge Science Center in Torrey Pines (pictured at right) signed AltheaDx to a 70,000 square feet at the recently renovated facility. The healthcare company was represented by Cushman & Wakefield’ Inc.’s Ted Jacobs, Brent Jacobs and Greg Bisconti while landlord Legacy Partners worked with Rich Danesi and Ryan Egli of CBRE Group Inc.’s life sciences group. Terms were not made available.

Torrey Ridge Science Center will become the home of AltheaDx once the company moves from its current Sorrento Valley locatiion at the beginning of next year. The property offers a full-service cafeteria with indoor/outdoor dining, conference and training facilities, a fitness center and nearby walking trails with exercise stations.

Image courtesy of legacypartners.com







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