Four Buildings, 112,300 sq. ft.
Year built: 1985
Address: 9755-9775 Clairemont Mesa Boulevard, San Diego, CA
Summary: This high quality Office and R&D complex features considerable stability as 54% of the rentable area has housed the same group of tenants for over 15 years. Much of the desirability of the Park derives from its extremely central and accessible location on the east side of the 15 freeway corridor adjacent to Kearny Mesa. The location is ideal for its current use as well as the development of apartments or condominiums.
Almost stabilized purchase. Minor interior and exterior improvements. Neighboring land and zoning potential.
Deal Points: The Tierrasanta Research Park was purchased due to its unique attributes of (i) providing excellent investment potential based on increasing rents with its current use while (ii) providing significant downside protection and upside potential based on change of use. The Partnership anticipates acquiring the adjacent land from what is a complicated and clouded ownership. Although the land may be used to provide additional parking, the possibility of converting the entire site into a multifamily development will be explored. The Park was acquired with low leverage and long term debt at a fixed rate of 3.78%. Prepayment penalties have been negotiated to allow for future development or disposition. The original vacancies have been leased at rates exceeding Proforma and the Park is expected to be a long term hold.