San Diego Mixed-Use Campus Trades for $97M
- May 21, 2018
GPI Cos. acquired The Campus on Villa La Jolla, a five-building, 198,453-square-foot mixed-use campus in the La Jolla neighborhood of San Diego. La Jolla Village Professional Center Associates sold the asset for $97.1 million. At the time of sale, the campus was 83 percent occupied.
The 6.8-acre property is sited between I-5 and the Pacific Ocean and consists of 8910 to 8980 Villa La Jolla Drive. The campus comprises a three-building professional center with office and medical tenants, a newly built stand-alone medical office building and a restaurant building occupied by Rock Bottom Brewery & Restaurant. The first three buildings, formerly known as the La Jolla Village Professional Center, were completed in 1980. According to Yardi Matrix data, the asset had been owned by the sellers since 1983.
More than half of The Campus on Villa La Jolla is leased to the Regents of the University of California. The main campus of the University of California, San Diego is directly connected to the property by a pedestrian bridge over La Jolla Village Drive.
NKF Capital Markets’ Kevin Shannon, Brunson Howard, Ken White, Paul Jones and Rick Stumm represented the seller. The buyer represented itself.
“The competition for this prime coastal location was fierce, as many buyers were attracted to the upside of the opportunity via lease up and repositioning, as well the tremendous scarcity of this type of for-sale product” in the University Towne Center (UTC) market, Shannon said in a prepared statement.
Not transit-oriented yet
“This property is primed to benefit from the $1 billion revitalization of UTC Westfield Mall, as well as the pending completion of the Mid-Coast Corridor Transit Project, and offers tenants walkable access to mass transit and world-class retail amenities,” Howard added.
The transit project will expand San Diego Trolley service by nine stations and about 11 miles, from the Old Town Transit Center north into the University City/UCSD submarket. The extension is expected to be in service in 2021.
Image courtesy of NKF Capital Markets