Big Money Wants Big Real Estate
Large, well-capitalized companies are buying—or at least looking—for the real estate they need, Colliers International SVP Tim Cowden tells us. The cost of capital is still low, but the cost of borrowing is especially sweet for deep-pocketed corporate users.
This week NBC 7 San Diego, a NBCUniversal station, closed on its acquisition of the 52k SF 9680 Granite Ridge Dr in San Diego, paying nearly $10M. Building a state-of-the-art studio, such as the one planned for Granite Ridge, is very expensive, says Tim, who's based in the San Diego office. (You want ratings? You better have a pretty dramatic weather set.) “So it makes more economic sense for the company to own the real estate and make customized improvements for the long-term rather than to have a third-party investor buy the building and borrow money at a higher rate to build the improvements unique to NBCUniversal,” he explains.
Tim, along with colleagues Jay Arnett and David Kim, repped the buyer in the deal, while CBRE’s Brad Black and Mike Hoeck repped the seller, T-C Stonecrest. The buyer plans to operate the space as the new TV studio and admin offices for NBC7 San Diego. (The kind of studio Ron Burgundy would be proud to report from.) The station will occupy the space upon completion of major improvements next year. The two-story building is located in the StoneCrest office complex in Kearny Mesa.