Proof Of An Office Recovery
The San Diego office market continues to recover, as recent acquisitions by Kilroy Realty, Alvarez & Marsal, and Prudential Real Estate Investors show. PREI just bought Rio San Diego Plaza, a six-story, 189k SF office building in Mission Valley. It was sold by AEW Capital Management on behalf of an institutional client. JLL's Lynn LaChapelle, who closed the sale along with Bob Prendergast, says the building boasts above-average floor plates and parking ratio (and no, that's not just because people are parking their car inside on the large floor plates); it's also LEED Silver.
Loeb & Loeb repped Alvarez & Marsal in the acquisition of Faraday Research Center (above) in Carlsbad, a 65k SF building leased to Ibis Biosciences--and some cabbage tenants (great to have since they put down roots and sign long-term leases). Not to be outdone, Kilroy's wallet opened wide to buy The Heights in Del Mar for $126M. The campus has a three-story office building and a three-story life science building totaling 210k SF, plus a subterranean parking structure. In addition, the nearly 14-acre property includes a land site that's fully entitled for a 90k SF office building. The campus sits directly next to KRC's future development, One Paseo. The existing LEED Silver buildings were built in 2004 and are 100% leased to five tenants.