Hines, Oaktree Buy Carlsbad Office/R&D Property

A Carlsbad, CA office/R&D asset recently traded hands as international real estate firm Hines moved to acquire the property along with a real estate fund managed by Oaktree Capital Management, L.P. The transaction for the property was completed for an undisclosed amount, and arranged by Greg Mills, Michael Lawrence, Ben Tashakorian and Alex Jize of Marcus & Millichap on behalf of the seller.

A joint venture of Hines and a fund managed by Oaktree Capital Management, L.P. has acquired a 178,570-square-foot office/research and development property in Carlsbad.

Located on a 13-acre at 2051 Palomar, the asset is 35 miles from downtown San Diego and 50 miles away from Irvine. Palomar Airport and a variety of local amenities are nearby.

Greg Mills, Michael Lawrence, Ben Tashakorian and Alex Jize of Marcus & Millichap Real Estate Investment Services Inc. arranged the sale on behalf of the seller. Terms were not disclosed.

“Carlsbad is a highly attractive submarket where Hines and Oaktree expect to grow our portfolio,” said Paul Twardowski, a Hines senior managing director, in a statement. He cited the Carlsbad’s attractive lifestyle and upscale demographics.

Current tenants include gaming giant Activision Blizzard, which produces the Warcraft and Call of Duty series, and Melles Griot, the global optics systems company. Hines, which will also serve as on-site property manager, plans upgrades to trim the property’s current 36 percent vacancy level.

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