SAN DIEGO, Calif. – September 10, 2018 – 35 North, a newly-renovated, multi-tenant office campus in Mission Valley, one of San Diego’s most vibrant and centralized submarkets, has sold to CIF Group for $19.75 million. Encompassing 94,701 square feet, the property consists of three low-rise office buildings located at 3530, 3550 and 3570 Camino Del Rio North. The sale also included the campus’ amenities building at 3522 Camino Del Rio North.
The seller was a partnership between San Diego-based Cypress Office Properties and HighBrook Investors based in New York City, which was represented by Rick Reeder and Brad Tecca of Cushman & Wakefield’s Capital Markets and Derek Hulse also of Cushman & Wakefield in San Diego. In 2017 the seller had made extensive capital improvements to significantly enhance and modernize the campus which was originally developed in 1981.
Mr. Tecca, Executive Director, said, “35 North was more than 85% leased to a highly-diversified collection of nearly 30 companies with no tenant occupying more than 15.5% of the property, providing strong in-place income and fixed annual rate increases for a consistent rise in cash flow.” He added, “The property’s investment appeal is further enhanced by recent renovations that greatly strengthen its value-add position in combination with its location in Mission Valley, which continues to experience strong tenant demand and rental rate growth—the property may also invite the potential to bring existing rents up to more standard market rates.”
Prominently located along Camino del Rio North, the 35 North campus sits on 4.27 acres and features newly revitalized building exteriors, interior lobbies and common areas. In the heart of the property design is an open-air courtyard with covered outdoor seating areas, a tranquil water feature, and colorful Southern California landscaping, all of which help promote collaboration and relaxation. The separate amenities building also contains racquetball courts and shower and locker facilities.
Mr. Reeder, Executive Managing Director, “The dynamic and collaborative business atmosphere created by this campus is complemented by its strategic location along Interstate 8 and near the confluence of I-8/I-15, where it benefits from exceptional visibility and access to freeways, public transit, world-class amenities and shopping centers, and expanding residential options.”
According to Cushman & Wakefield’s latest office market report, Mission Valley had a single-digit vacancy of just 8.3% at the midway mark of 2018, ranking among the lowest office vacancies in all of San Diego County.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action 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.