Newport National Corp. sold Summit Pointe, a 146,626-square-foot creative corporate office campus on nearly 21 acres in San Diego to an undisclosed partnership for $68.4 million. The new ownership will be able to develop an additional 175,000 square feet of office space on the site.
Cushman & Wakefield brokered the sale with Executive Managing Director Rick Reeder and Executive Director Brad Tecca of the firm’s San Diego Capital Markets office representing Newport National, a Carlsbad, Calif.,-based real estate company. Leasing advisory was performed by Jay Alexander and Tim Olson of JLL and Chris Williams of CBRE. The buyer represented itself in the transaction.
Located at 10641 Scripps Summit Court in the Scripps Ranch submarket, the existing four-story building was completed in 2000 and is situated on an 11.5-acre parcel and the future development site is on a 9.5-acre parcel. Newport National acquired the property in November 2016 for $31.4 million from HD Supply Facilities Maintenance, which relocated to Atlanta, according to CommercialEdge and Yardi Matrix data. Mesa West Capital originated a $28 million first mortgage loan for the acquisition, renovation and stabilization of the office building. Newport National, which completely repositioned the property with interior and exterior renovations, used the loan proceeds for a new exterior entrance, lobby and common area upgrades, a new coffee bar, upgraded fitness center and a new training and events room.
In March 2018, TrellisWare Technologies, a major communications technology firm, signed a nine-year lease for 72,331 square feet at Summit Pointe, which is set alongside San Diego’s Interstate 15. The tenant uses the space for its corporate headquarters.
Reeder said in a prepared statement the repositioning by Newport National had advanced the property to the top tier of office assets in the I-15 corridor and neighboring submarkets. The expansion through the new development will enable the new ownership to attract and retain world-class tenants seeking quality building environments, he added.
Tecca called the transaction an attractive value-add investment offering of an adaptive re-use of a traditional corporate office building. He noted in prepared remarks that the improvements made by Newport National were purposely designed and positioned to support expansion at the site for Summit Pointe Phase II.