Arrowhead Insurance Signs $24M Lease

CARLSBAD, CA-Insurance firm Arrowhead General has signed a $24-million lease for two office buildings at Bressi Ranch, an office campus that will break ground later this year. The company will occupy 95,000 sf that will accommodate up to 450 employees.The company has Downtown San Diego and Sorrento Mesa locations. The Downtown office will remain intact, while the Sorrento Mesa office will relocate. The firm will bring approximately 400 processing and claims employees to Bressi Ranch following the end of the lease. Patrick J. Kilkenny, chairman of Arrowhead General, says the firm wanted to get a head start on selecting an alternate property.”With less than two years left on our lease, we were concerned that if we waited much longer opportunities for new space that would meet our specialized needs would be limited,” Kilkenny says.Mahlberg tells Globest.com that because the buildings can be split, the firm has flexibility to sell or lease one of the properties in the future.”They had an opportunity to purchase and that is unusual in San Diego County nowadays,” says Barry Mahlberg from Burnham Real Estate, who represented Arrowhead General and Kelly Capital in the transaction. “Arrowhead locked in at a good price for a built-to-suit property.”The property is under construction by Kelly Capital Corp., the landowner and the developer. The project is expected to being construction later this year with an expected completion date of spring 2007.”Arrowhead is one of San Diego’s pre-eminent companies and its decision to relocate here reflects the high caliber of the park and its growing appeal for companies who want a North County location,” says Ken Satterlee, landowner and managing partner of Kelly Capital.The property was designed by Denny Smith of Smith Consulting Architects. The buildings feature painted concrete and reflective glass exteriors, tile accents and two-story entryways and lobbies.