EverWest Snags $43M San Diego Office Asset
- Aug 24, 2018
In a $43 million deal, EverWest Real Estate Partners has acquired DMcp, a newly renovated, Class A creative office project in San Diego. Cushman & Wakefield’s Capital Markets represented the seller, an affiliate of Cruzan, in the transaction.
Located at 12651 and 12671 High Bluff Drive, the 74,402-square-foot property comprises two, three-story buildings. Before the sale, the previous owner completed $4.4 million in capital improvements to the property. This included a newly renovated, two-story atrium lobby, new flooring, an upgraded indoor/outdoor fitness center and locker facilities, high-end interior finishes, fully built-out new generation spec suites and enhancements to the exterior facade. The property was 75 percent leased at the time of sale.
Local office market outlook
Cushman & Wakefield’s Executive Managing Director Rick Reeder and Executive Director Brad Tecca arranged the transaction.
“Not overlooked by investors, San Diego in general, and specifically Del Mar Heights, is benefiting from a measurable increase in tenant demand, declining vacancy rates and limited new construction that has added upward pressure on rental rates, creating strong underlying fundamentals,” Tecca told Commercial Property Executive. “These facts coupled with San Diego’s relative pricing discount as compared to other West Coast markets has created a surge in investment activity, as capital has a renewed focus on acquisition opportunities throughout the county. DMcp was the perfect offering at this point in the real estate cycle, providing the Buyer with a clear path to stabilization without the need to invest a large amount of new capital to execute on their business plan, all while acquiring an asset located in what is arguably one of Southern California’s most exciting coastal markets.”
Earlier this month, a joint venture of Everwest, George Oliver Cos. and WHI Real Estate Partners sold The Quad for $51 million. The 14-building, 166,606-square-foot creative office campus in Scottsdale, Ariz., was purchased by City Office REIT.
Image courtesy of Cushman & Wakefield