Admiral Capital, in partnership with investment-management firm Admiral 2R Management LLC, has acquired The Balboa Executive Center, a five-story 120,992-square-foot, class-A office building at the intersection of Balboa Avenue and Ruffin Road in the Kearny Mesa submarket San Diego for an undisclosed amount from an institutional real estate investor. The seller had invested significant capital into the building during its ownership prior to the sale.
Rick Reeder, executive managing director, and Brad Tecca, executive director, of Cushman & Wakefield’s Capital Markets in San Diego represented the seller in the disposition. Reeder says the property has been institutionally owned and professionally maintained since 1999.
“This quality asset was more than 98 percent leased at the time of sale, providing the buyer with great long-term credit tenancy and stable cash flows — notably, the two largest tenants, which account for nearly half of the NRA, have continued to expand and extend their presence within the project,” Reeder says.
Tecca adds the that property, which was originally developed in 1988, was acquired by the seller in 2015, and its capital investments have “strengthened the property’s identity, including a fully renovated lobby and corridors, newly upgraded fitness center, exterior furniture additions and landscaping upgrades, common-area charging stations, Wi-Fi, and more.”
Balboa Executive Center features a glass-curtain wall façade, efficient floor plates, on-site amenities, abundant parking, and window lines offering mountain views. Situated on a well-placed 4.4-acre parcel, the property offers regional access to I-15 within a half mile, plus four additional freeways all located within three miles.
According to Cushman & Wakefield’s latest midyear report, the Kearny Mesa office submarket boasted a single-digit vacancy of just 8.5 percent in the second quarter of 2018, a leader among all major San Diego County office submarkets. Furthermore, office vacancy in Kearny Mesa has been halved since year-end 2015, when it stood at 17.1 percent. Meanwhile, this submarket also maintains solid occupancy growth, netting more than 617,000 square feet of positive office absorption since the start of 2016.