The appeal of San Diego’s Mission Valley submarket continues to increase. A partnership between San Diego-based Cypress Office Properties and Manhattan-based HighBrook Investors has sold 35 North, a recently repositioned, 94,701-square-foot multi-tenant office campus in San Diego’s Mission Valley submarket, for $19.75 million, according to a release distributed by a representative of Cushman & Wakefield (C&W). The buyer was not revealed in the release, but the source tells SoCal Real Estate the buyer is CIF Group, a private family office based in Los Angeles.
The property comprises three low-rise office buildings located at 3530, 3550, and 3570 Camino Del Rio North, according to the statement, which also says an amenities building at 3522 Camino Del Rio North containing racquetball courts and shower and locker facilities was part of the sale.
According to the release, 35 North is located on 4.27 acres along the I-8 freeway, close to where I-8 and I-15 connect. The statement says the recent renovation included “newly revitalized building exteriors, interior lobbies, and common areas,” and other features include an open-air courtyard with covered outdoor seating areas and a water feature.
The seller JV was represented by executive managing director Rick Reeder and executive director Brad Tecca of C&W’s Capital Markets and Derek Hulse, also of C&W in San Diego, says the statement, which adds that in 2017, “the seller had made extensive capital improvements to significantly enhance and modernize the campus, which was originally developed in 1981.”
In the statement, Tecca is quoted as saying, “35 North was more than 85 percent leased to a highly diversified collection of nearly 30 companies, with no tenant occupying more than 15.5 percent of the property, providing strong in-place income and fixed annual rate increases for a consistent rise in cash flow.” He adds that the recent renovations, combined with Mission Valley’s growing market appeal, may help provide “the potential to bring existing rents up to more standard market rates.”
According to C&W’s latest office market report, Mission Valley had a single-digit vacancy of 8.3 percent at the midway mark of 2018, ranking among the lowest office vacancies in all of San Diego County, the release says.
As we reported in April, a joint venture between Hill Properties and a fund managed by DRA Advisors LLC purchased 1450 Frazee, a 140,477-square-foot, institutional-quality office building in Mission Valley from an affiliate of Menlo Equities Inc. for $33.05 million, according to a release from a representative of JLL.