The two-story, class A corporate office property stands on a 4.5-acre parcel at 15015 Avenue of Science in the Carmel Mountain area of San Diego. Encompassing 90,000 sf, it contains a 3,000-sf full-service cafeteria, as well as a parking ratio of 3.25 per 1,000 sf. Constructed and sold in 1998 for $14 million, Carmel Corporate Plaza is currently occupied by Cadence Design Systems, a supplier of electronic design products for computers, networking and telecommunications equipment.

The facility serves as Cadence Design's regional office headquarters, but the company plans to relocate in June 2003. However, the buyer is currently in the process of signing up tenants for 30,000 sf in the building, according to Matt Root, a partner with The Shidler Group, who adds that "some of Cadence's subsidiaries will remain in the facility." He expects the value of the recently acquired asset to grow in subsequent months, as Cadence is currently paying a rent that is below market. "The rents that we book in the future will add value," he explains, adding that the price the joint venture paid for the property was "relatively cheap by the pound." The previous owner, Hibiscus LLC, was unwilling to face the rollover risk involved by Cadence's decision to relocate, which is why they were willing to sell the property for $11 million, Root says.

John Hale of Colliers International acted on behalf of Hibiscus LLC. The buyer was represented in-house.