San Diego Office Asset Changes Hands for $33M
- Apr 19, 2018
A joint venture between Hill Properties and a fund managed by DRA Advisors has acquired 1450 Frazee, an office building in San Diego’s submarket of Mission Valley. JLL Capital Markets completed the sale on behalf of the seller, an affiliate of Menlo Equities.
According to Yardi Matrix data, the property was purchased for $33 million and DRA Advisors assumed the $20 million outstanding balance of a loan held by Guggenheim Life and Annuity Co. from 2012. Menlo Equities bought the building from Invesco Real Estate in 2010 for $18.4 million.
Located at 1450 Frazee Road, the 1982-built asset comprises 140,477 square feet across seven stories. At the time of sale, the building was 90.6 percent occupied by 27 tenants. Notable tenants include UC San Diego and ADP, which currently occupy more than 40 percent of the leasable space, as well as Delta Dental, Johannah’s Creations, Sola Salon Studios, Diamond Electronics and DB Wealth Management Group. According to Yardi Matrix, there are three suites available to lease in the building, totaling 23,059 square feet. The building also offers 5,900 square feet of ground-floor retail.
“Our goal at Hill Properties is to acquire well-located, functional properties such as 1450 Frazee. The property is located in Mission Valley’s premier location at Friars Road and Highway 163, is within one block of the trolley station and is surrounded by retail amenities. This is truly a Class A, urban-suburban neighborhood,” said Jason Hill, principal at Hill Properties, in prepared remarks.
The property provides easy access to State Route 163, interstates 5, 8, 805 and 15, is 10 minutes from downtown San Diego and served by the San Diego Trolley. Several hotels, restaurants and two regional malls are also located nearby. JLL Capital Markets’ Senior Managing Director Lynn LaChapelle, Managing Director Bob Prendergast and Vice President Sach Kirpalani led the team in this deal.
Image courtesy of JLL