In the recent finance transaction, borrower PGP La Jolla LLC has received the $1 million in funds from a New York-based institutional lender. The borrower plans to use the capital to refinance its 6,752-sf office asset, which it plans to hold as an investment. The property is located at 1150 Silverado St. in La Jolla.
Jamie Dick of Burnham Capital Markets Group arranged the loan for PGP La Jolla LLC.
Investors continue to look favorably on San Diego County office assets, despite a continued slowdown in leasing and rents here. Office vacancies continue to rise, while rents declined by 4.8% from June 2002 to June 2003, according to a summer report published by Marcus & Millichap Real Estate Investment Brokerage Co. However, "the current slowdown has done little to deter investors from buying San Diego office buildings, with a record number of transactions and sales volume in 2002 and early 2003," according to Kent R. Williams, vice president and regional manager of Marcus & Millichap's San Diego office.
Despite short-term blips in San Diego County's commercial real estate market, investors are attracted to the region due to its solid long-term fundamentals, such as a diverse job base, strong economy and steadily rising population growth.
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