The properties, which encompass a total of 96,646 sf, stand at 8975 and 8985 Balboa Ave. within Balboa Corporate Center, which is located in the Kearny Mesa area of the city. The Jack Henry & Associates subsidiary Symitar, which provides progressive technologies, will occupy the facility. It plans to use the space for its office and tech needs.
LBA principal and director of acquisitions David Thomas believes Jack Henry & Associates was attracted to the property partly because of its Kearny Mesa address. This submarket boasts a number of strong fundamentals, including a central location, great access to freeways, a diverse tenant base and no real traffic congestion issues, he tells GlobeSt.com.
In the recent transaction, Jack Henry & Associates was represented by Tim Fisher of Glaze Commercial Real Estate Advisors. Rick Sparks of CB Richard Ellis acted on behalf of the selling entity, which is a partnership of LBA and AEW Capital Management known as LBA-VF III LLC.
LBA originally purchased the two facilities, along with a third building located at 8965 Balboa Ave., in 1998 for $10 million. The three facilities comprise Balboa Corporate Center, which encompasses a total of 120,000 sf. At the time of LBA's 1998 acquisition, the three-building property was 100% occupied by Overland Storage, which was renting at a below-market rate with several years left on its lease.
During the course of LBA's ownership, Overland Storage was released from its lease due to the firm's wish to move to a larger space. LBA actually developed a 158,000-sf build-to-suit for Overland Storage on a nine-acre parcel at San Diego Spectrum that it purchased for $7.3 million from LNR Kearny Mesa LLC.
Overland Storage vacated the Balboa Corporate Center around a year ago and Jack Henry & Associates was secured as a buyer a few months later, according to Thomas. He tells GlobeSt.com that the two buildings were tied up in escrow because the company decided to split the property into separate parcels. "We had to create three separate parcels and file a new parcel map and then common area agreements," Thomas explains.
The third facility, located at 8965 Balboa Ave., was leased to the County of San Diego for 10 years and then sold to another LBA partnership known as LBA-VF3 LLC. That property fetched $4.8 million.
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