CARLSBAD, CA—Graymark Capital in partnership with Blue Vista Capital Management, has acquired two creative office/R&D assets here, totaling 202,061 square feet for a combined $25.7 million.
The larger of the two, @Palomar is a five building, 127,287 square foot creative office/R&D property located at 6349 and 6359 Paseo Del Lago and 1939, 1945 & 1949 Palomar Oaks Way.
Currently, the portfolio is 45% leased. This project is well-located, with excellent freeway access, and is poised to take advantage of strong tenant/user demand for space in the rapidly tightening Carlsbad flex/R&D market. Graymark is planning to execute a repositioning plan that includes major interior upgrades and minor cosmetic improvements to the exterior. The market-ready renovation of the vacant space will bring the portfolio to a tech/creative quality that is highly sought after in this market.
The overall business plan is to invest capital strategically to bring the portfolio to a level of finish and appeal that is frequently found in the best locations of north San Diego County. The property was purchased through Bob Prenderast of the San Diego office of JLL. It will be leased and marketed by Bob Willingham of Kidder Mathews.
The second property, 3209 Lionshead is the corporate headquarters of prAna Living, a lifestyle brand committed to weaving sustainable practices into its operations and supply chain and the first major apparel company in North America to offer Fair Trade USA certified products and accessories.
PrAna is one of the portfolio brands of Columbia Sportswear Company. The 74,774 sf asset was constructed in 2008 and is improved with creative office interiors, outdoor amenities and functional warehouse space. This property was an appealing investment for Graymark due to the strength of the tenant, strong cash yield, discount to replacement cost and excellent market fundamentals. The property was purchased through Rick Reeder and Brad Tecca of the San Diego office of DTZ.
Both assets are located within the 14 million-square-foot industrial/R&D market of Carlsbad. The city is home to a number of high quality technology, medical and lifestyle tenants. Recent leasing activity has produced increasing rates of absorption and suggests that this trend is likely to continue.
Graymark Capital Inc. is a real estate investment firm located in San Francisco that invests in commercial properties throughout the West Coast.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
