A joint venture between Hill Properties and a fund managed by DRA Advisors LLC has purchased 1450 Frazee, a 140,477-square-foot, institutional-quality office building in San Diego’s Mission Valley from an affiliate of Menlo Equities Inc. for $33.05 million. Mission Valley is one of San Diego’s leading submarkets.
The property is a seven-story office building adjacent to State Route 163. The building is currently 90.6 percent leased to 27 tenants. Two strong-credit tenants, UC San Diego and ADP, occupy over 40 percent of the leasable space.
JLL Capital Markets experts senior managing director Lynn LaChapelle, managing director Bob Prendergast and VP Sach Kirpalani led the team on completing this transaction. The seller had acquired the asset in March 2010.
“Menlo’s attention to detail and its focus on providing a quality office environment appealed to an impressive array of tenants,” says Prendergast. “Institutional investors were attracted to the quality of the rent roll, combined and with the asset’s strategic location in San Diego’s largest submarket.”
According to Jason Hill, a principal at Hill Properties, the firm’s goal is to acquire well-located, functional properties. “The property is located in Mission Valley’s premier location at Friars Road and Highway 163, is within one block of the trolley station, and is surrounded by retail amenities. This is truly a class-A, urban/suburban neighborhood.”
The location of 1450 Frazee in the live-work environment of Mission Valley is surrounded by amenities, including several hotels, many restaurants and two regional malls. Situated 10 minutes north of Downtown San Diego, the building is close to on ramps for Interstates 5, 8, 805 and 15 and is served by the San Diego Trolley system.