San Diego–based real estate investment firm Cruzan has acquired Carlsbad Commercial Center, an office/industrial asset located at 5205-5375 Avenida Encinas in Carlsbad, California, for an undisclosed amount from an unnamed seller, according to a release from a representative of CBRE. Carlsbad is located in the North County submarket of San Diego County.
Carlsbad Commercial Center is an eight-building business park that was 92 percent leased at the time of sale, the release says. Built in 1982, the campus comprises eight buildings ranging in size from 10,400 square feet to 23,200 square feet and has been under the same ownership since the late 1980s, CBRE reports.
The release describes Cruzan as an owner-operator focused on acquiring and repositioning commercial office, flex, and industrial real estate assets throughout the West Coast. One of the firm’s most prominent repositionings in the Carlsbad market is Make at 5600 Avenida Encinas.
The statement says CBRE’s Louay Alsadek, Darla Longo, Barbara Perrier, and Hunter Rowe represented the seller in the transaction while Cruzan represented itself. The rep declined to provide any information about the seller.
Alsadek is quoted in the release as saying, “Carlsbad Commercial Center is a premier coastal business park located west of I-5 in Southern California and is in walking distance to Carlsbad beaches. The project size, design, and unique environment were all contributing factors that drove a significant amount of investor interest. The property has consistently outperformed its competition and has maintained an average occupancy of 97 percent since 2014.”
CBRE also reports that positive momentum in the third quarter positioned the greater San Diego–area office market well ahead of where it was in 2017 in terms of net absorption, asking rates, and vacancy. Office users added 10,400 jobs year over year and contributed 43.2 percent of all job growth while
average asking rates increased to $2.96 per square foot, up 2.1 percent year over year, pushing all classes to historic highs, according to CBRE research.