Office Property In Busy Carlsbad Market Trades For $14M
The deal comes at a time of tenant interest in Carlsbad. As a North San Diego office submarket, Carlsbad has accounted for about 70% of North County’s absorption since 2017, according to CBRE data.
Swift, an active buyer and seller in California and elsewhere, acquired the property as part of a portfolio buy in 2015 and since then has treated it as a value-add play. Among other improvements, the company renovated its common areas and restrooms, added balconies for some suites and did landscaping work.
Currently the property is 86% leased. CBRE’s Louay Alsadek and Hunter Rowe represented the seller, while the Newport Beach-based Peregrine represented itself.
Overall, the greater San Diego area enjoyed enough positive momentum during the second half of 2018 to increase net office absorption and asking rates, while vacancies were down in most submarkets, according to CBRE.