Fairfield Residential Agrees to 76,000 SF

SORRENTO MESA, CA-Fairfield Residential, a developer and owner of multifamily property, has agreed to a long-term lease at Morehouse Tech Center I. Fairfield signed a six-year, $11.9-million lease for 76,387 sf.Fairfield was already a tenant in the building, with nearly 45,000 sf at the office facility, which is its corporate headquarters, and will nearly double its space requirements under the new agreement. Fairfield is not consolidating from other locations. “They had been using space in a more dense way,” says Brigham Black, vice president of leasing with the Shidler Group, the building’s owner. “This move allows them future growth.”Black represented the Shidler Group in-house, while Jeremy Dee and Gary Goodgame of Corporate Realty Advisors represented Fairfield Residential. Black tells Globest.com that Fairfield’s agreement will bring the property to 100% occupied.The Shidler Group acquired Morehouse Tech Center I, II and III this past January as part of a $142-million portfolio acquisition of Arden Realty Inc. properties in the San Diego and Los Angeles areas. The three Morehouse facilities total just over 182,000 sf.Black tells Globest.com that upon acquiring the Morehouse properties, the Shidler Group marketing team began developing an action plan to lock up space at the facility long term. Although Fairfield’s lease was not due until 2006, Shidler approached the firm about inking an early renewal and expansion.AMEC Earth and Environmental Inc., a defense contractor, currently takes some 40,000 sf at Morehouse Tech Center, but will move to Kearny Mesa at the end of the year when its lease expires. Fairfield will take over the AMEC space in January.According to Black, the Sorrento Mesa submarket has rebounded during the second quarter. “We’ve seen a major up tick in activity,” he adds.The Shidler Group owns between 500,000 sf and 600,000 sf in the submarket and has activity in all its buildings in the area, Black says. “We’re currently seeing good absorption and in the third and fourth quarters, we will see tremendous lease and investment deals that will positively affect the submarket.”