SAN DIEGO-Following a rebranding effort that included owner Treena Properties LP adding a series of amenities, Cush Plaza Scripps Ranch is now 100% leased. The 93,387-square-foot, class-A office building has signed leases with 11 new tenants for a total consideration of $16.6 million.
When Treena purchased the asset in December 2010, the property had been in receivership and sat vacant in shell condition since its completion in 2008. The CBRE leasing team of Jeb Bakke, Ryan Egli and Laura Bonnett was awarded the assignment in January 2011 and leased the building from completely vacant to 100% occupied in 18 months.
The project’s five largest tenants all signed five-to-10-year leases including Balfour Beatty Construction, Internet Marketing SEO, Regus, Bureau Veritas and SelectQuote.
“The project was almost three years old when the new owners purchased it, but the building was virtually brand new because it was never occupied,” said Bakke in a prepared statement. “The building’s image was tarnished by the long period of inactivity. We worked closely with the ownership to design a rebranding campaign that included renaming the project, adding on-site management, constructing class-A amenities and proactively building move-in-ready suites to enhance the brokerage and user group’s perception of the building.”
Class-A amenities added to the project include a fitness center with showers and lockers, state-of-the-art shared conference room, basketball court, putting green, horseshoe pit and outdoor dining area. The new tenants range in size from 2,100 square feet to 24,000 square feet. According to Egli, the competitive lease rate, freeway visibility, on-site ownership and amenities captured the attention of a crucial segment.
“After an exhaustive analysis of Scripps Ranch, we determined that the majority of the upcoming rollover was in the 10,000 to 25,000-square-foot sector,” Egli said in a prepared statement. “We tailored our proactive marketing efforts to this size range of users. We marketed a realistic asking rate for a project with brand-new class-A amenities, and as a result our building is 100% leased.”
According to CBRE, the Scripps Ranch class-A office vacancy rate was 31.6% at the end of second-quarter 2012 compared to 40% vacancy at the end of second-quarter 2011. Cush Plaza accounts for 78% of the submarket’s total class-A leasing activity over the last 18 months.
As GlobeSt.com previously reported, in first-quarter 2012 Scripps Ranch saw seeing increased activity and higher asking rental rates, while downtown rents were very flat, with overall leasing velocity slow in that submarket for the previous few quarters, Eli Gilbert, senior research analyst for JLL, told GlobeSt.com.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
