The Deal Sheet
Why are condo developers getting out their check books in Bankers Hill? (It's not for Girl Scout cookies.) To scope out high-quality infill sites. It's just one of the markets where condo development is starting again, says Colliers SVP Victor Krebs.
Recently, Victor repped the Catholic Church of St. Paul in the sale of a 20k SF parcel at Fifth and Nutmeg in Bankers Hill to regional developer Colrich, which plans an upscale 45-unit mixed-use project. The site is half a block from Balboa Park and will be the first new condo project built in the mid-city area during this cycle. In the past year and a half, Victor's seen an increase in the number of condo developers who've come back into the market to build stacked flats in higher-end infill and coastal areas like La Jolla. At this stage, he says, most of these condo deals are medium sized—50 to 100 units—as opposed to the institutional-scale apartment guys.
Colrich's project will include 7,500 SF of ground-floor retail. Victor says St. Paul's originally purchased the site for parking. However, the church realized it didn't need as much parking as anticipated and hired a consultant to entitle the site for a mixed-use building. (Everyone must be carpooling to church.) Victor says the fully entitled site received 10 offers. When he's not selling infill property for adaptive reuse or ground-up mixed-use redevelopment, Victor spends his time with wife Gail and their two young sons Evan and Reid at the beach or playing sports.
SALES
Kilroy Realty sold Pacific Medical Plaza, a 50k SF MOB in the Golden Triangle area, to a San Francisco-based investor for $33M. JLL's Bob Prendergrast, Paul Braun, Chris Ross, and Lynn LaChapelle repped the seller. The building is 100% leased; major tenants include UC San Diego and Surgical Center of San Diego. JLL has been retained for leasing and management.
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JH Real Estate Partners bought the 126k SF San Carlos Shopping Center (125 Freeway at Navajo Rd) in the Lake Murray section from an East Coast seller for $35M or $279/SF. Plans call for a repositioning and renovation of the center, which is 81% leased and has space for two junior anchors. JHREP hired Cassidy Turley as the leasing brokers.
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Stanford Descendent Trust bought Gardena Gardens Apartments in Encinitas (1141-1195 Gardena Rd), consisting of five duplexes, a single-family home and a vacant lot on 1.2 acres, from the Rubalcaba Family Trust for $3M as part of a 1031 Exchange. CBRE's Eric Comer, Jim Neil, and Merrick Matricardi arranged the sale. The property was developed by Bernardino Rubalcaba, who served under Gen. George Patton during WWII. Factoid: After the war, having saved enough money to buy land to build a home for his family, Bernardino had a broker refuse to present his purchase offer because he was Mexican-American. He then directly contacted the landowner, Col. Ed Fletcher, who responded: “If you served your country, then I believe you have the right to buy land anywhere you want in this country.”
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The Elizabeth Hospice sold its former HQ, a 15k SF office building in Escondido (150 W Crest St) for nearly $2.3M. CDC Commercial's Don Zech and Nick Zech repped the seller. Cresa's Simon Terry-Lloyd repped the cash buyer.
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Mission Bay Automotive bought a 5,247 SF industrial building in the Bay Park area, 1735 Morena Blvd., from Ocwen Loan Servicing for nearly $1.3M. Cassidy Turley's Erik Parker and Darren Mullins repped the seller, while Cushman & Wakefield's Jeff Brown repped the buyer, which will be moving out of leased digs.
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Turnkey Powertrain bought an 11k SF industrial building, 3915 Oceanic Dr in Oceanside, from CSEPP Partnership II for just over $1M. Lee & Associates-North San Diego County office repped both sides: Rusty Williams for the seller and Stephen Crockett for the buyer.
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Number One Rocky Point bought a nearly 11k SF industrial building in Carlsbad, 1357 and 1361 Rocky Point, for just over $1M. Lee & Associates' Glenn Stokoe repped the buyer.
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Kathleen de Paolo Trust bought a three-unit multifamily property in Encinitas (583-585 Melba Rd), consisting of a two-story duplex plus a non-conforming unit, from Carmel Trust. Colliers International's Rita Lancaster-Hannah and Daniel Knoke repped the seller, and Pacific Sotheby's Don Conley repped the buyer.
LEASING
Rapid Response Emergency Flood Service signed a five-year early renewal on a 23k SF industrial space in San Diego, 9755 Distribution Ave. Lee & Associates' Justin Harvey and Scott Danshaw repped the tenant, and landlord Westcore Distribution repped itself.
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San Diego Rescue Mission leased 7,085 SF of retail space for five years (3601 Sports Arena Blvd in San Diego) from 3-Day Suit Broker. Cassidy Turley's Mike Clark and Joe Yetter repped the tenant, and Cushman & Wakefield's Kyle Clark repped the landlord.
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Decor Furniture Enterprises leased 8,208 SF of industrial space in San Diego, 7343 Carroll Rd, from HG Fenton Properties. Lee & Associates' Justin Harvey and Scott Danshaw repped the tenant, whose previous building in Morena was purchased by Coronado Brewing Co, prompting its relocation. Voit Real Estate Services repped the landlord.
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Chun & Gloria Yim Family Trust of 1991 bought a 16k SF retail space in the Calexico Retail Center, 2536 Rockwood Ave in Calexico, from Wally Properties for nearly $3.3M. Cassidy Turley's Mike Clark and Joe Yetter repped the seller.
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Stanley Black & Decker USA renewed a 5,600 SF space in San Diego, 7288-7294 Clairemont Mesa Blvd, for another three years. Lee & Associates' Michael Abernathy repped landlord John Hancock Real Estate, and CBRE repped the tenant.
THIS & THAT
KMA Architecture moved into new digs on the second floor of Barracks 17 at NTC at Liberty Station. The firm says its 4,000 SF, open office layout is more team-focused and non-hierarchical than its previous quarters of more than 30 years.
EXECUTIVE MOVES
Jeff Graham joined JLL's public institutions group as an SVP, responsible for public entity projects throughout the Southwest and Northwest. Most recently, he was president of Civic San Diego, a public, nonprofit corporation that plans and implements downtown San Diego's redevelopment on behalf of the city.
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Greystone added Matt Stevens to its San Diego production team as part of the multifamily lender's California expansion. Previously with Alliant/ACRE Capital, he brings 15 years of commercial lending and banking experience, and for the past 18 years has served as a radio color analyst for UCLA football.
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Escondido-based Realty Income Corp named Debra Bonebrake SVP of industrial, distribution, and office properties. She spent 18 years at Prologis, most recently as managing director responsible for management of the firm's North American industrial and distribution portfolio.
