A joint venture of IDS Real Estate Group and Lionstone Investments has acquired a four-building Class A office portfolio in San Diego for $76.8 million from McMillin Cos. The joint venture also secured a $58.9 million, 72-month, floating-rate acquisition loan with Suntrust Bank for the properties.
The properties are all within Liberty Station, a 361-acre mixed-use development on the site of the former Naval Training Center in the Point Loma neighborhood. The two-story buildings are four separate assets located at 2280, 2468 and 2488 Historic Decatur Road and 2750 Womble Road. The office building located at 2280 Historic Decatur Road has 48,930 square feet of office space, 2468 Historic Decatur Road has a total of 38,594 square feet, 2488 Historic Decatur Road has 38,632 square feet of office space and 2750 Womble Road has a total of 60,383 square feet.
Completed between 2003 and 2006, the properties are 81.1 percent leased overall to a tenant roster including legal, professional and financial services, aerospace and defense, hospitality, government and media tenants.
An HFF investment advisory team representing the seller included Nick Psyllos and Kara Mathis. An HFF debt placement team representing the borrower in the acquisition loan included Tim Wright and Chris Collins.
San Diego’s office sector is poised for significant growth, as demand for office space is fueled by several companies expanding their presence in the metro, as well as job growth in the education and health services sectors.
Image courtesy of Yardi Matrix