Vista Investment Group has acquired Seville Plaza, a seven-acre office/medical campus located at 5469, 5471, and 5473 Kearny Villa Road in San Diego’s Kearny Mesa submarket, in an off-market transaction with LLJ Ventures for $27.5 million.
The transaction markets the second significant office investment for Vista in the San Diego market in the past 12 months. In September 2017, Vista acquired Plaza 2020, a 105,796-square-foot, class-A office building in Mission Valley.
Seville Plaza comprises three identical, freestanding, 48,000-square-foot, low-rise office buildings built in 1981. Recent renovations include updated lobbies, common areas and elevator cabs, and new signage. Common-area amenities include outdoor meeting areas and surface parking at an above-market rate of 4:1000.
The property is 93 percent leased and is anchored by County of San Diego’s Health and Human Services division. The acquisition increases Vista’s San Diego portfolio to 250,000 square feet and 80 multifamily units.
Vista Investment Group’s president and co-founder Jonathan Barach calls Kearny Mesa “a solid office market that benefits from single-digit vacancy and its location in the geographic center of San Diego County. It is a supply constrained market that has seen little to no new inventory added during this cycle. At our cost basis, Seville Plaza represented an excellent value-add opportunity with strong current cash yields, enhanced by a credit anchor tenant.”
Vista’s previous relationship with both the seller and the broker, HFF, helped facilitate the off-market transaction. The HFF investment advisory team included senior director Nick Frasco, senior managing director Nick Psyllos, and analyst Taylor Bergthold. HFF’s debt placement team included managing director Marc Schillinger and associate Ryan Ash.