Terraces, a 205,725-square-foot premier office building in San Diego, has changed ownership for the first time. Yardi Matrix identified the seller as PGIM Real Estate, which completed the asset in 2009. The San Diego market remains a hotbed for office investment, bolstered by higher acquisition yields than in other coastal markets, as well as the market’s own strong overall performance.
Located on 15 acres at 5887 Copley Drive, Terraces is in the city’s Kearny Mesa neighborhood. A Kaiser Permanente medical facility and San Clemente Park are right across the building, while various eateries, hotels, amusement centers and retailers are within walking distance. The Interstate 805 and Route 52 intersection is minutes away, providing easy access throughout the entire area.
Terraces is a LEED Silver certified, six-story property that features 35,000-square-foot floorplates, 1,069 parking spaces and electric vehicle charging stations. Amenities include café/dining area, coffee house, fitness center, yoga/dance room, as well as outdoor putting green and sports court. According to Yardi Matrix, Guild Mortgage, Cricket Communications and Cox Media are among the tenants of the building, which was 100% leased at the time of the sale.
A Cushman & Wakefield Capital Markets team comprising Rick Reeder and Brad Tecca represented the seller in the transaction. Brett Ward and Michael Cassolato led the market advisory efforts. Earlier this month, another Cushman & Wakefield team arranged the sale of a 8,772-square-foot asset located less than 15 miles to the northeast.