New Owner Plans Major Transformation of Former Hughes Aircraft Co. Facility into Modern Creative Campus
SAN DIEGO, Calif., December 11, 2018 – Cushman & Wakefield announced today the purchase of a 208,904-square-foot (sf) creative office/R&D campus in Carlsbad (San Diego), California by a joint venture between SteelWave, LLC and funds managed by Angelo Gordon.
Situated on over 13 acres, the single-story, multi-tenant property is located at 2051 Palomar Airport Rd. and was sold by Palomar Acquisitions Partners, LLC. Executive Managing Directors Aric Starck and Rick Reeder with Cushman & Wakefield in San Diego represented the seller in the transaction.
Starck said, “Carlsbad is an ideal choice for this type of redevelopment into a lifestyle campus. Carlsbad has become a hot bed for high-tech, biotech, and medical device companies that are looking for amenity-rich environments so that they can recruit and retain the top talent. The North County market currently has unmet demand for this type of space and no new coastal sites for future development opportunities of this size or scope.”
Originally developed as a build-to-suit campus for Hughes Aircraft Co. in the early 1980s—with a series of renovations over the decades since—the new owner plans for significant interior and exterior upgrades and improved amenities that will completely enhance and modernize the project. In addition, SteelWave and Angelo Gordon are embarking upon a full re-brand of the campus that will both honor the property’s history while embracing its future as a vibrant new creative environment that will predominantly target tech, biotech and creative industry tenants.
Enhancements being made to the campus are to include a new full-service fitness center, a new bistro with indoor/outdoor seating, contemporary architecture, common areas with gaming and lounge areas, and multiple outdoor patios and workspaces. These upgrades will complement existing features such as extensive glass lines garnering natural light, abundant parking, and convenient accessibility to Interstate 5 and its position across from McClellan-Palomar Airport.
The property was approximately 55% vacant at the time of sale, to which Reeder said, “A health and science tenant in the project recently restructured their real estate needs resulting in a large block of available space—though the company still maintains a notable presence in the building. This vacancy provides the new owner an excellent opportunity to add value through the repositioning and subsequent lease-up of the newly refurbished spaces, to either mid-size or larger users.”
Starck noted, “Spanning seven miles of coastline, Carlsbad offers beautiful weather which workers remain attracted to, and which demand has helped lead to several hundred thousand square feet of tenant migration in just the past few years. We expect this North County community to remain a key draw for companies wanting to be in Southern California.”
SteelWave is a full-service commercial, residential and mixed-use real estate management, operating company and investment management firm. SteelWave and its predecessor companies, Legacy Partners Commercial and Lincoln Property West, have been active in commercial real estate for 45 years. The firm has built a reputation for successful execution by sourcing sound investments in its 6 key markets: Northern California, Southern California, Denver, Seattle, Portland and Texas. As a vertically integrated leader in the industry, SteelWave sources, entitles, designs, finances, develops, renovates, leases, manages and sells real estate investments on behalf of many well-known institutional clients. In 2017, SteelWave brought Dennis Cavallari of The Cavallari Group (and previously a partner with Legacy Partners Residential) on board to oversee its multifamily and mixed-use development and acquisition opportunities.
Since its inception, the SteelWave team has acquired, developed or managed 6,000 multifamily units, 60.1M SF of industrial product and 36.6M SF of office product across its Western United States target markets at a combined cost of over $10.7 billion.
About Angelo Gordon
We are a leading, privately-held alternative investment firm, managing approximately $32 billion across a broad range of credit and real estate strategies. For 30 years, we have been investing on behalf of pension funds, corporations, endowments, foundations, sovereign wealth funds and individuals. Over our entire history, Angelo Gordon’s investment approach has consistently relied on disciplined portfolio construction backed by rigorous research and a strong focus on capital preservation.
We are entrepreneurial and opportunistic. We have grown by pursuing strategies that complement and build on our core capabilities. We now have over 480 employees in offices across the U.S., Europe and Asia. Combining deep industry sector and market expertise with a collaborative, knowledge-sharing culture, we creatively seek out investment opportunities that allow us to exploit inefficiencies in global credit and real estate markets.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.