November 10, 2011
By Nicholas Ziegler, News Editor
Amid the rapidly improving San Diego office market, real estate investment firm DivcoWest and private CRE investor Stockbridge Capital Group have jointly completed the purchase of the 159,425-square-foot commercial- and medical-office complex Genessee Executive Plaza. The office, featuring twin three-story buildings, was acquired for $46.8 million – which included a $28 million loan from Bank of America.
Stuart Schiff, CEO of DivcoWest, said the asset has “an existing prominent identity” in the city, as it sits “in a prestigious submarket and we see the potential to add future value.”
Built in 1984, Genessee occupies 3.63 acres in the University Town Center submarket of San Diego. In June 2009, the property underwent a $1.2 million capital-improvement renovation.
A market report by Voit Real Estate Services pegs the San Diego market as an improving one. The firm noted that, in the third quarter of 2011, the city’s office sector posted 468,008 feet of positive absorption, a marked improvement from the previous quarter’s negative net absorption. Chris Wood, managing director of Voit’s San Diego office, called the trend “a strong indication that the market is stabilizing” and said he expects “to see a bump in activity” because “confidence will return quickly.”
Genesee Executive Plaza is currently 69 percent leased with less than 17 percent of the occupancy rolling in the next three years.