TIAA-CREF Buys Rady Children's Office
Fresh from buying Copley Corporate Center, the teachers investment giant is still in the market for more stabilized deals. But there may not be any more opportunities like this for institutional money, cautions one of the city's top investment sales brokers.
CBRE's Louay Alsadek (flanked here by his sons Adam and Jacob during a recent car show) says it's tough to find a solid investment worth more than $25M on the market in San Diego County. “The activity in San Diego in the last two years is still 60% to 70% of the activity we used to have in '04, '05 and '06,” he says.
The 120,500 SF office building at 5855 Copley Dr in Kearny Mesa is fully leased to Rady Children's Hospital, University of California San Diego Regents and Kaiser Permanente. The secret ingredient to this investment, Louay says, is the parking ratio: seven spots for every 1k SF, a nearly unheard of number anywhere in San Diego. He says the parking ratio is responsible for keeping the occupancy in the building so high. Local press put the price at $43.5M, or around $360/SF.