Michael Moore, first vice president of CB Richard Ellis, tells GlobeSt.com that the market for office property is gaining steam. Moore says that the Kearney Mesa submarket, where the property is located, leads the San Diego area in total net absorption. Copley Corporate Center was on the market for approximately eight weeks before it sold.
According to Moore, Pacific had reached the end of their hold period with the property, which explains the decision to let the property go and reinvest. "Given the market fundamentals, it was a good time for them to sell," Moore tells Globest.com.
Tenants at the Copley Center include HSBC Auto Finance, University of California Regents and Kaiser Foundation Hospitals. Spanning 5.3 acres, the property was built in 2001 and is located adjacent to Route 52 and I-805. At the time of its development, Orange County-based Buchanan Street Partners arranged $21.2 million in financing.
Louay Alsadek of Grubb & Ellis/BRE worked with Kevin Shannon of the South Bay office of CB Richard Ellis, in representing the seller and buyer on the transaction. Earlier this week, GlobeSt.com reported four other Southern California deals Shannon's team, which includes Moore, Scott Schumacher, Paul Perkins and Rob Hannan, closed.
Those deals totaled $143 million and included office, industrial and retail properties totaling more than 1.1 million sf. Shannon's team started work on the four transactions when the team was still with Grubb & Ellis.
For Colony Realty Partners, this Southern California buy of Copley Corporate Center is another aggressive move West for the Boston firm. Last month Colony Realty made a major play in the Phoenix area.
In that deal, the firm competed against 13 other offers in picking up the 604-unit San Valiente from CalSTRS. The $66.7 million apartment deal counted Colony Realty's first Phoenix area acquisition.
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