Lowe Acquires $61M Portfolio

SAN DIEGO-Los Angeles-based Lowe Enterprises Investment Management has taken another major stake in the metro area market. The real estate investment, development and management firm has acquired a local portfolio from Cruzan Monroe for $61.3 million. The portfolio counts some 358,000 sf in four buildings and also includes a 3.8-acre parcel available for development. Secured Capital Corp. represented both the buyer and the seller in the transaction. “San Diego is one of our top targets and this acquisition offers us value-added assets and development opportunities,” says Kathleen Briscoe is the executive vice president of Lowe Enterprises Investment Management, LLC.The portfolio includes Century Park I, three buildings totaling 202,000 sf. The property also has a 770 space parking structure. The property is the corporate headquarters for San Diego Gas and Electric. It was built in 1986 as the first phase of what is a six-building, 400,000-sf office campus in Kearney Mesa. The first building is a two-story, 68,000-sf facility. Building two counts two stories and 82,000 sf. Building three is three stories on 52,000 sf. According to Briscoe, the Century Park property is 100% occupied, but the leases are staggered, which gives Lowe the opportunity to bring all tenants to market rates.The second piece of the portfolio is a 156,239-sf office and industrial building located at 2858 Loker Ave. in the Carlsbad Palomar Business Center. Built in 1999, the space is 54% occupied by PacifiCare Health Systems for general pharmacy, distribution and office/lab space. “We’re looking at a single tenant, but it could be filled by multi-tenants as well,” Briscoe tells Globest.com.The final piece of the portfolio is a 3.8-acre site in the Carlsbad Palomar Business Center that is entitled for development. It’s adjacent to the 2858 Loker site and can accommodate a 60,000-sf, two-story building. “We could flip the property or hang on to it for a credit build-to-suit,” Briscoe says.This portfolio buy is the latest in a string of activity in San Diego for Lowe Enterprises. The company is developing Ocean Ridge, a 75,000-sf, class A office building in Carlsbad Ranch. It also owns a 10-acre site for commercial development in the Rancho Bernardo area. In July, Lowe Enterprises’ hotel group opened the Estancia La Jolla Hotel and Spa.