SAN DIEGO—Kearny Real Estate Company has acquired Mission Center Office Park, a 181,000-square-foot low-rise office campus in San Diego's Mission Valley from Boston-based TA Realty in a transaction valued at $29.2 million.
Mission Center Office Park is located at 5353 Mission Center Road, immediately south of Friars Road near the 230-acre Civita mixed-use development, which is currently under construction. The property consists of a two-story 53,000-sf building leased to the County of San Diego, and two three-story 64,000-sf multi-tenant, atrium-style office buildings on a 6.7-acre lot overlooking the San Diego River. Mission Center Office Park was 89% leased at the time of sale.
“Mission Valley is the geographic center of San Diego and this project is at the center of Mission Valley,” said Kearny Real Estate partner John Bragg who heads the firm's San Diego office. “We intend to enhance its image with completely new landscaping and unique architectural features.”
The immediate area around the office park is benefiting from more than $3 billion in existing and planned investment that will add approximately 10,000 new residential units and 500,000 square feet of retail amenities by 2020. Kearny was attracted to the Playa Vista-like qualities of Mission Valley, according to Kearny founder and managing partner Jeff Dritley. “Mission Valley feels like Playa Vista 10 years ago, but benefits from even better access to mass transit,” Dritley said.
Mission Center was built in 1975 and renovated in 2005. It has immediate access to SR-163 and Interstate 8 and is a three-minute walk to the San Diego Mission Valley Center Light Rail Station, which connects to Amtrak and the Coaster commuter train.
Designed as classic multi-level atrium buildings, the existing “bones” provide light from opposite sides of tenant suites and floor-to-ceiling glass on the atrium side. There will be opportunities for all tenants to incorporate an indoor/outdoor environment. Kearny will undertake a multi-million dollar capital improvement program to upgrade the buildings common areas including the 2nd and 3rd floor atriums, where enhancements will provide multiple outdoor gathering options for tenants. For those tenants on the ground floor, Kearny will provide private outdoor patios. This ground floor feature will be “one-of-a-kind” to the Mission Valley market, said Jeff Givens, Kearny vice president.
Kearny has engaged the local office of architectural firm LPA to oversee the redesign.
Kearny Real Estate is a partnership of experienced real estate professionals active in the acquisition, entitlement and land development, development, repositioning, distressed debt workouts, leasing, management and disposition of commercial real estate projects with an aggregate value of more than $4.4 billion. Among its assets include the 232,936-square-foot office building at 530 B Street in Downtown San Diego, which Kearny recently offered for sale.
The San Diego office of JLL headed by Richard Gonor will lead the leasing team. Kevin Shannon, Louay Alsadek, Andrew Taylor and Hunter Rowe of CBRE represented both buyer and seller in the transaction.
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