RANCHO BERNARDO, CA-Brookwood Financial Partners has acquired the Bernardo Executive Center here from TA/Western LLC. Brookwood declined to reveal the sale price to GlobeSt.com.
The multi-tenant office property consists of two two-story buildings and one three-story building on a 9.15-acre parcel of land.
Constructed in 1984, the property has 173,244 rentable square feet and is 78.2% leased. It fronts Interstate 15, providing easy access throughout San Diego County to the south and to Riverside and San Bernardino counties to the north.
“This property has flexible floor plates, with spaces ranging in size from 1,000 square feet to more than 20,000 square feet, and an abundance of parking,” said Thomas W. Brown, Brookwood’s senior managing director and director of acquisitions, in a prepared statement. “These property features, combined with our ability to offer attractive rental rates and competitive leasing packages in a submarket that continues to attract a large number of office users makes us feel very confident in our ability to execute our business plan over the next few years.”
Brookwood was attracted to the property because of the quality and stability of the existing tenancy and the positive absorption trend in both the San Diego and Rancho Bernardo office markets, and as a result, the firm says it is confident that it can renew existing leases and fill vacancy in a short period of time. “The Rancho Bernardo submarket is recovering at a faster pace than the broader market,” said Brown. “The vacancy rate in this submarket has fallen to 11.2% in the second quarter of 2012 after reaching a peak of 28.5% in the third quarter of 2009.” CBRE Econometric Advisers projects that the vacancy rates in Rancho Bernardo will decrease further to 27% in 2017.
Brookwood intends to enhance its leasing effort with more than $1.4 million of capital improvements, including investments in common areas and the exterior building entrances, signage, building systems, windows and landscaping. The seller was represented in the sale by Louay Alsadek of CBRE, and Brookwood has retained CBRE as leasing agent.
Rancho Bernardo is the second acquisition by Brookwood in the San Diego area in the last 10 months. In October 2011, the firm acquired Mission Valley Crossroads, a 139,727-square-foot office building located in the Mission Valley submarket of San Diego, as GlobeSt.com previously reported.
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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.
