By Gabriel Circiog, Associate Editor
San Diego-based Cypress Office Properties LLC has purchased a 78,400-square-foot Class A office building in Escondido. Located at 500 La Terraza Blvd, the three-story building was built in 2008 and RenTV.com reports it was 38 percent leased at the time of sale.
Ron Lack, a principal with Cypress Office Properties, said the developer had secured two high-quality leases with Wells Fargo Bank and RBC Capital upon opening in 2008. As the economy slowed down, the building was ultimately returned to the lender. Although financial terms of the deal were not disclosed, Ron Lack mentioned the building was acquired well below replacement cost.
Gary Stache, Louay Alsadek, Pat Scruggs, Evan August and Anthony Delorenzo of CBRE handled the sale for the buyer and seller. The leasing of the property will be handled by CBRE’s Larry Cambra and Dan Yielding and the property will be managed by CBRE’s Property Management team.
In other news, Signon San Diego reports BioMed Realty Trust is planning to raise over $400 million through stock offering in order to purchase additional life sciences buildings in San Diego and six other markets across the country.
The REIT has set the share prices at $17.92 for almost 22.6 million shares which were previously sold to UBS Investment Bank, the underwriter on the offering.
Alan Gold, chairman and CEO, said the money will be used to make a partial payment of the $750 million credit line and maintain a $600 million acquisition fund.
BioMed is targeting finalized, income-producing assets rather than investing in new construction projects. The primary targets are biotechnology and pharmaceutical buildings, headquarters of scientific research institutions and government agencies.
BioMed has a portfolio valued at $12 billion, with over 12.4 million square feet of buildings across the country and 1.9 million square feet are located in San Diego.