Joint Venture Acquires Industrial Properties for $29M

VISTA, CA-The publicly traded dj Orthopedics Inc. will have a new corporate headquarters within 18 months. As part of a joint venture between El Segundo-based Pacific Coast Capital Partners and Newport Beach-based the PRES Cos., the medical device company will see a new 110,000-sf headquarters facility go up on vacant land adjacent to its current HQ in a project that’s set for 14 to 18 months to complete.In the deal, the joint venture paid $29.3 million for Oak Ridge Corporate Center, a 266,150-sf corporate campus. The transaction’s debt financing was provided by Redwood Capital Finance Co. LLC, an affiliate of PCCP. The space is 100% occupied by dj Orthopedics. The joint venture acquired the space from Stetman & Morris Properties. The property counts three buildings of R&D, manufacturing and distribution space. “The dj Orthopedics facilities acquisition and build-to-suit development represent PRES’ strong continuing commitment to the San Diego market and will significantly add to our growing San Diego County real estate portfolio,” says Stephen R. Lloyd, PRES’ senior vice president, San Diego.The first building was built in 1991 and is 120,152 sf with 35,000 sf of office, 50,000 sf of assembly/warehouse space and 35,152 sf of straight warehouse space. The second building was built in 1995 and is 126,041 sf with 50,000 sf of office space, 50,000 sf of climate-controlled assembly space and 26,041 sf of warehouse space. The third building was built in 1998 and is 19,957 sf with 2,000 sf of office and 18,000 sf of warehouse/assembly space. The new headquarters will be built on 6.6 acres of land by PRES Cos. while the existing space will be available for lease upon completion of the new facility. “We will benefit from dj Orthopedics’ strong tenancy during a 15-month marketing period for future tenants, before dj Orthopedics relocates. The divisibility of the buildings on separate parcels also allows for a flexible leasing and sales approach,” says Greg Galusha, managing director, Pacific Coast Capital Partners LLC. In the interim, dj Orthopedics is relocating its manufacturing operations to a new facility in Mexico. The company will consolidate its domestic operations into the new space once it’s complete.Grubb & Ellis