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San Diego Office Sales Heat Up as End of Year Approaches

15 Dec 2014, 12:35 am

By Alex Girda, Associate Editor

The San Diego office market is a hotbed for small and medium-size transactions these days as investors scramble to wrap up deals before the end of the year. Sales have closed recently in a variety of submarkets, such as Rancho Bernardo, Carlsbad, Mission Valley and Kearny Mesa.

Palo Alto-based Menlo Equities Associates L.L.C. paid Parallel Capital Partners $22 million for One Technology Place in Rancho Bernardo. Located at 10905-10949 Technology Place, the complex comprises 10 buildings totaling roughly 152,000 square feet.

The campus was developed in 1985 on a 12-acre site. At the time of the transaction, One Technology Place had an occupancy rate of about 75 percent. According to The San Diego Business Journal, the property underwent a $3 million renovation of its interior and exterior.

In Kearny Mesa, MIG Real Estate acquired Viewridge Business Park. Located at 4711, 4715 and 4719 Viewridge Ave., the asset totals 72,571 square feet. Currently 82 percent occupied, the property counts such tenants on its roster as Coastal Credit, Yardi Systems and Vericare. JLL arranged the transaction on behalf of both MIG and the unnamed seller; terms were not disclosed.

In Carlsbad, CBRE Group Inc. arranged the sale of Pacific View Plaza. The 51,825-square-foot building traded hands for $13 million from San Diego-based Cruzan to Peregrine Realty Partners. Located at 5973 Avenida Encinas, the property underwent a series of improvements during Cruzan’s year-and-a-half-long ownership.

And in Mission Valley, Shopoff Realty Investments acquired 2650 Camino Del Rio from Terra Enterprise in a deal worth $11.1 million. Built in 1983, the property will be renovated and repositioned by the new owner.

Image courtesy of parallelcapitalpartners.com

 



Colliers’ Carlsbad Teams Wrap $11M in Industrial, M-F Sales

4 Dec 2014, 5:19 pm

By Alex Girda, Associate Editor

The Carlsbad office of Colliers International recently completed two San Diego-area transactions valued at a combined $11 million. The deals involved a multi-tenant industrial building and a 1980s-vintage apartment complex.

San Diego-based PacVentures  Inc. acquired a 76,954-square-foot industrial building in Vista Business Park at 970 Park Center Drive in Vista. Colliers said that the property, which is fully leased to two tenants, traded for $7.45 million. Colliers’ Russ Jabara and Dave Pinnegar represented the seller, FG&S L.L.C., as well as PacVentures.

Colliers also handled San Diego Heritage Partners, L.L.C. ‘s $3.7 million purchase of a two-building, 16-unit multi-family community. Located at 4638 and 4648 Ohio St. in the University Heights submarket, the 10,578-square-foot property was developed as condominiums in 1982, and comprises six one-bedroom and ten two-bedroom units.

Peter Scepanovic and Corey McHenry of Colliers’ multi-family advisory team arranged the trade between San Diego Heritage Partners and the seller, Ohio Street Villas Group L.L.C.

“University Heights and North Park areas continue to be some of the top-performing multifamily markets in San Diego County due to improving sub-market fundamentals: rising rents, lower vacancy rates, and attractive interest rates on apartment loans,” Scepanovic noted in a statement.

  



Pechanga Resort & Casino in Temecula to Get $285M Expansion

20 Nov 2014, 5:10 pm

By Alex Girda, Associate Editor

The Pechanga Band of Luiseño Indians recently revealed plans for a $285 million expansion of the Pechanga Resort & Casino in Temecula. The project will be an economic catalyst that will generate $550 million in activity and create nearly 3,000 jobs, according to Christopher Thornberg of Beacon Economics.

The expansion will add around 550 rooms at a four-diamond standard, a luxury spa, new ballroom and meeting space, a resort-style pool complex and other enhancements. According to a statement from the Pechanga Band, more than a third of the new space will be dedicated to new suites.

A 23,000-square-foot spa, salon and fitness center will offer 17 treatment rooms and a terrace with hydrotherapy pools and will be included in a new two-story building. The hotel component will include 67,000 square feet of flexible meeting and event space. Two new restaurants will be added, bringing the number of current dining options to 13.

Delawie, the architectural firm that designed the original resort, is serving as architect for the expansion. Lifescapes International is the designing the pool area and landscaping.

Tribal Chairman Mark Macarro noted in the statement that “almost 20 years ago we started our journey toward self-sufficiency.” Still ahead is the environmental study, which requires approval of Temecula and Riverside County officials. The resort has provided $10.4 million to widen Pechanga Parkway and the development of a new bridge over Temecula Creek, as well as funding for construction of the Ultimate Interchange at the I-15 and Temecula Parkway.



Northrop Grumman Renews Lease at Kearny Mesa Campus

13 Nov 2014, 10:55 pm

By Alex Girda, Associate Editor

Northrop Grumman Systems Corp. has completed a deal that will keep the aerospace and security technology company at its current home in Kearny Mesa. According to the local office of Colliers International, the company has renewed its lease for the space that it has occupied for nearly a decade at the Kearny Mesa Spectrum Center. Colliers noted that the leasing agreement is one of the largest of its kind in the area this year.

Located at 9326 and 9356 Spectrum Center Blvd.. and 4830 Ruffin Rd., the three-building campus has been occupied by Northrop Grumman since its completion in 2005. The campus includes a pair of two-story buildings and a three-story building that comprise 182,870 square feet.

The Kearny Mesa campus features a data center, 608 surface parking spaces, electric vehicle charging stations, fenced and gated parking, and a cafeteria with multiple outdoor dining areas. 

According to a statement, Tom Wilcox and Jay Arnett of Colliers represented the owner, American Fund US Investments L.P., while Tom Martinez and Evan Knutsen of CBRE Group Inc. represented  Northrop Grumman. Colliers’ San Diego office serves as property manager, and Real Estate Capital Partners is the asset manager.



Financing In Place for Gaslamp Quarter Hotel, Montage’s 1st Pendry-Branded Property

6 Nov 2014, 4:48 pm

By Alex Girda, Associate Editor

Construction financing is in place for a $138 million Montage hotel in San Diego’s Gaslamp Quarter. George Smith Partners recently announced that it has arranged $95 million in funding for a partnership of The Robert Green Company and Montage Hotels & Resorts. The 317-key hotel will also mark the debut of Montage’s new Pendry brand.

Pendry San Diego held a groundbreaking ceremony last month for the new building, which will take shape at 5thand J streets on the former site of a cigar store and parking lot. The site was previously considered as the possible location for a new Marriott Renaissance hotel. The developers are banking on demand generated by the nearby San Diego Convention Center.

“This hotel project has been in the works for more than 10 years, with a variety of challenges to overcome,” said George Smith Partners’ Principal Malcolm Davies in a statement. He noted that during the financing process, he drew from his former activity as a developer in the San Diego area.

“Despite so many competing variables that could have distracted lenders from the value of the hotel, I was able to work with our company’s network of lenders to educate, negotiate and ultimately secure our client the financing they needed to get the project into the construction phase.”

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