Del Mar Heights Creative Office Sells For $43M
DMcp, a creative office project totaling 74K SF in the Del Mar Heights market, has sold to Denver-based EverWest Real Estate Partners for $43M. The seller was an affiliate of SoCal-based Cruzan, which had recently completed $4.4M in capital improvements to the property.
On 3.5 acres at 12651 and 12671 High Bluff Drive, DMcp consists of two three-story buildings with traditional and creative characteristics. The property is about 75% leased.
“DMcp presented a rare opportunity for an investor to acquire a fully renovated office project in one of the most desirable coastal communities,” Cushman & Wakefield’s Rick Reeder said. Reeder, along with colleague Brad Tecca, represented the seller.
“In 2017, Cruzan completed extensive common-area improvements, including a newly renovated two-story atrium lobby, interior finishes and new flooring, an indoor/outdoor fitness center and locker facilities, and fully built-out new generation spec suites," Tecca said.
"The investment made by the seller helps provide the buyer with a clear path to stabilization with limited required capital, reducing risks associated with prolonged vacancy," he said.
According to Cushman & Wakefield’s latest market report, Del Mar Heights has proven to be one of San Diego’s leading office growth submarkets in 2018 with over 50K SF of net absorption through midyear.
