Admiral Capital Buys San Diego Office Building
- Aug 02, 2018
Admiral Capital has acquired The Balboa Executive Center, a Class A office building in San Diego. According to Yardi Matrix, the last known owner was EQ Office, which purchased the property in 2015 from GE Capital Real Estate for $28.3 million.
Located at 9444 Balboa Ave., the property comprises 120,992 square feet across five stories. Constructed in 1988, the building features common area Wi-Fi, on-site showers and locker rooms, three passenger elevators, a fitness center and 464 parking spaces. The 4.4-acre Balboa Executive Center has a vacancy rate of 1.9 percent and is home to 16 tenants including Essex Property Trust, GSA, ESN, San Diego County Health & Human Services, NV5 and more. According to Yardi Matrix, there is one suite available on the fourth floor, totaling 2,325 square feet.
Executive Managing Director Rick Reeder and Executive Director Brad Tecca of Cushman & Wakefield’s Capital Markets in San Diego, represented the seller in the deal. In May, the duo also arranged the $17.9 million sale of a multi-tenant office building in the Rancho Bernardo master-planned community of San Diego, representing the seller, Palisades Property Trust.
Quality investment opportunity
The previous owner implemented a capital improvements plan to fully renovate the lobby and hallways, upgrade the fitness center, add exterior furniture and updated landscaping, as well as the addition of common area charging stations.
“It is no secret that suburban office trading volume throughout the U.S. has lagged behind other asset classes, particularly industrial and multifamily, over the past few years. Recently, we have experienced renewed interest in suburban office product as pricing and achievable yields as compared to other asset classes looks increasingly favorable, and with investors seeing an opportunity to take advantage of strong economic conditions and continued attractive financing options,” Tecca told Commercial Property Executive.
“The buyer/seller pricing gap appears to be narrowing leading to an increase in the number of bids that we are receiving, especially for well-located assets in amenity-rich locations that provide walkable retail options,” he added. “Balboa Executive Center has a proven historical track record of maintaining high occupancy levels while leading the market in achievable rental rates. This, in addition to the quality and location of the real estate and an investment grade rent roll, led to double digit offers and a competitive bidding situation.”
Image courtesy of Cushman & Wakefield