San Diego Commercial Real Estate Wrap-Up – March 2020

Cornerstone Corporate Center. Image courtesy of Cushman & Wakefield

The San Diego commercial real estate market moved forward at a steady pace in the first half of March, with major brokerages reporting sales across a wide array of asset classes. Developments continued to move ahead as well, with a 1 million-square-foot mixed-use project landing $300 million in financing. However, the future is uncertain due to the new coronavirus pandemic. California Governor Newsom issued a statewide shelter-in-place order on March 19, and most real estate activity effectively came to a halt. Here’s our March selection of San Diego must-knows:

1. DEAL – JV buys Carlsbad office park for $34.2 million.

The Wasatch Group sold Cornerstone Corporate Centre, a four-building, 177,917-square-foot property. Harbor Associates and Platform Ventures purchased the Class A asset in an off-market transaction. Located on more than 14 acres at 1917 Palomar Oaks Way and 1900, 1902 and 1903 Wright Place, the structures have 17,436-square-foot floorplates and a wide range of amenities, from a swimming pool to a volleyball court. Cushman & Wakefield represented the seller. 

2. DEAL – CBRE arranges El Cajon MOB sale.

The brokerage represented the seller in its $5.5 million disposition of Grossmont Summit, a two-story, Class A asset at 1380 El Cajon Blvd. The new owner is a local medical group, which will occupy space on the building’s ground floor. The property came online in 2006 and has 79 parking spaces.

3. DEAL – Colliers brokers Escondido industrial sale.

The brokerage represented the seller of the two-building portfolio. According to Rentv.com, the assets total 15,500 square feet and traded for a combined price of $3.3 million. Horizon Lighting Inc. purchased the first property, located at 2222 Meyers Ave., for $2.2 million. A private investor acquired the second building at 670 Opper St. for $1.3 million. Lee & Associates assisted both buyers.

4. FINANCING – Downtown redevelopment lands $330 million loan.

Stockdale Capital Partners secured the financing from AllianceBernstein to develop a mixed-use addition to Horton Plaza. Upon completion in late 2021, the Campus at Horton will have 700,000 square feet of creative office and 300,000 square feet of retail space. The project is designed to achieve LEED and WELL Platinum standards.

5. DEAL – Hanley Investment closes single-tenant retail property sale.

The firm represented the seller, a private investor, which paid $3.6 million for the two-building asset. CBRE worked on behalf of the buyer. Located at 7025 Manya Circle and 170 Hollister St., the property is less than a mile from Interstate 5. Caliber Collision is the sole tenant under a long-term, triple-net lease.