The Deal Sheet
Drawbridge Realty Trust snapped up Broadcom's regional HQ in the Discovery Corporate Center from Menlo Equities for $36.5M. With this latest deal, the private investment and development firm owns three of the four buildings in the Rancho Bernardo campus. (That fourth building better sleep with one eye open.)
As the campus's flagship building, the three-story, Class-A building contains nearly 91k SF on four acres and is fully leased to Broadcom. Yesterday, Drawbridge's co-founders--chairman/CEO Mark Whiting and vice chairman Mark Pearson--told us the tenant has 5.5 years left on its lease, with options to renew. Broadcom, a Fortune 500 semiconductor company, has made a substantial investment in building out the interiors, which is why the two Marks believe it will exercise its options to stay long-term. The building houses a division that does research important to the company's assets in the mobilecom arena. Most of the employees there are high-earning engineers. (So you'd be wise not to challenge them to a game of Jenga.)
The building (16340 W Bernardo Dr) was constructed in 2007. While it wasn't actively marketed, the folks at Drawbridge and Menlo sat down and came to an agreement. "They wanted to get something closed by the end of the year, and we were able to do it," Mark Pearson says. He notes the Rancho Bernardo submarket along the I-15 corridor has become a preferred location for large corporate users in the tech, defense, and education industries. Drawbridge's 228k SF in Discovery Corporate Center has only one 15k SF vacancy. In addition, the company recently rehabbed a 25k SF building on Nancy Ridge Drive and is getting good interest from biotech users.
MTK SoCal Investments bought a 35k-plus SF office building in San Bernardino (1094 S E St) for $4.6M. The buyer plans to convert the former big box property, which has been vacant for the past decade, into a county facility. NAI Capital's Marc Piron and Lidia Talavera repped seller Jara Holdings Second LLC.
Lanikai Partners III bought a nearly 28k SF industrial building, 1155 Industrial Ave in Escondido, for just under $1.9M. Colliers International's Tucker Hohenstein repped the buyer, which plans to renovate and lease the M2-zoned property. Lee & Associates' Rusty Williams and Chris Roth repped seller Levine Family Trust.
Starwood Capital Group completed its acquisition of Parkway Plaza in El Cajon, one of seven regional malls the investment firm bought from Westfield Group for $1.6B. Westfield maintains a 10% common equity interest in the properties, which total nearly 8M SF and span four states.
Essex Property Trust bought Domain by Alta-San Diego, a 379 luxury apartment community in the Spectrum Center business Park, from Wood Partners for $121M. The complex, Wood's first San Diego community, opened a year ago and is 80% leased. Ron Harris of Marcus & Millichap's Institutional Property Advisors division brokered the deal.
Caret Industries bought a 25k SF industrial building, 8112-8122 Engineer Rd, from Santa Ana-based Trinity Christian Center for just over $3M. Cassidy Turley's Brant and Bryce Aberg repped the buyer, while Lee & Associates' Dave Hunsaker repped the seller.
Corsair Properties bought a 27k SF industrial/R&D building, 3182 Lionshead Ave in Carlsbad, from Gathering Storm Properties for $5.6M. The building is leased to Taylor Made Golf, which has three years remaining on its lease. Colliers International's Adam Molnar and CBRE's Greg Lewis repped the seller. Available Properties' Henry Wildermuth and Jonathan Garvey repped the buyer.
By next summer, hopheads will have more to enjoy. Ballast Point Brewing and Spirits leased a 106k SF building in the Miramar area, 9045 Carroll Way, for an expansion of craft beer production. The 15-year lease, valued at $16M, is the largest industrial lease in San Diego this year. According to Voit's Jeff Chasan, who repped the tenant, breweries need specialized facility services and systems including floor drainage, outside areas for tanks and storage, and access for large trucks. Voit's Todd Holley and Randy LaChance repped landlord HG Fenton. The facility, which will house a brewery as well as bottling and canning lines, is slated to open in mid-2014. The new site, which will be Ballast's fourth and largest location in San Diego, will include 18k SF of retail including a tasting room and restaurant.
Trinity Woodworks leased a 33k SF industrial/flex building, 2620 Temple Heights Dr in Oceanside, for office administration, woodworking, and finish cabinetry. The space features hardwood floors and crown molding. Colliers International's Josh McFadyen and Joe Crotty repped the landlord, Temple Heights Property Co, while Judson Real Estate's Matt DeWitt repped the tenant.
Silverado Senior Living renewed its 5,755 SF office lease at 3750 Convoy St in the Kearny Mesa Crossroads office park for an additional six years. Lee & Associates' Mary Kay Bier repped the tenant, while JLL rapped the landlord, Kearny Mesa Office Center LLC.
Pacific Dental Services leased 4,126 SF of retail space for 10 years at
La Jolla Village Square, 8657 Villa La Jolla Dr. Cassidy Turley's Kevin Cassidy repped the tenant, while CBRE's Reg Kobzi repped the landlord.
Massage Envy leased 4,200 SF of retail space for 10 years at Plaza Rancho Penasquitos, 9925 Carmel Mountain Rd in San Diego. from SunBrewer Partners. Cassidy Turley's Bruce Schiff, Phil Lyons, and Chad Iafrate repped the landlord, while CBRE's Carrie Bobb repped the tenant.
CONSTRUCTION & DEVELOPMENT
Circle K Stores plans to break ground in Q1 on a new flagship prototype, consisting of a 4,500 SF C-store offering fresh food, an eight-pump Mobil gas station, and a self-serve car wash. The project, which was approved earlier this month by the San Jacinto City Council and is the first to be built in SoCal, represents Phase I of Southland Development Co's Esplanade Commons. The 18-acre mixed-use shopping center is in pre-leasing.
Trigild was appointed receiver for One Chesterfield Place, a five-story, 143k SF Class A office building in Missouri. The property last traded in 2006 to a TIC entity for $26M.
Some management changes are afoot at Trigild: Judy Hoffman, who has been with the property/asset management and fiduciary services firm since 1984, was promoted from COO to president. Replacing her as COO is Brian Morelan, formerly managing director. Bill Hoffman remains chairman and CEO of the company he helped found in 1976.