Cushman & Wakefield’s Multi-Service Platform Helps Reposition Property as Premier Asset
Oceanside CA— Pacific Gateway Towers, a 68,748-square-foot, two-building Class A office and medical project in Oceanside (San Diego), California has sold for $14.94 million. Private Investor Charlie Jadallah acquired the property from IPF Tri City, LLC (Fenway Properties, LLC). The sale price produced a cap rate of 7.37%. Investment specialists Mark Avilla, Rick Reeder and Brad Tecca of Cushman & Wakefield’s San Diego office represented the seller. The buyer was represented by Nick Totah of Marcus & Millichap. Matty Sundberg and Bob Cowan of Cushman & Wakefield also performed market advisory.
Pacific Gateway Towers consists of two 4-story multi-tenant buildings on 5.16 acres and located at 3142 and 3156 Vista Way in San Diego’s desirable North County. IPF Tri City, LLC had purchased the project in 2014 at approximately 57% leased as a value add opportunity. The project underwent significant renovations in 2015/2016 to reposition and then was leased up to approximately 95.5% at the time of Jadallah’s recent acquisition. Mr. Avilla along with team members Mr. Sundberg and Mr. Cowan had also represented both Buyer and Seller in the 2014 transaction and the team also handled the successful lease up following the sale.
Mr. Avilla, Senior Director, said, “Just a few years ago this project was very appealing as an investment given its desirable location, but it was dated with its original 1980s-style design and deferred maintenance. As such, the project was competing with lesser-classed buildings due to the condition of the project, so in 2014 the new ownership undertook a major renovation of the project, which included interior and exterior upgrades to the common areas and renovation of suites to shell condition or as spec suites.
Fenway Properties, Larry Jackel said “Our Cushman & Wakefield leasing team had developed a detailed plan to help address the projects most important issues and began an aggressive marketing campaign to begin changing the perception of the project within the community. With a creative and innovative re-branding campaign we were able to not only fill up the project’s vacancies, but were also able to push rents by approximately 50% during this period, which undoubtedly repositioned the property to Oceanside’s premier office project.”
Prominently located within the seaside community’s amenity-rich area of Oceanside, Pacific Gateway Towers also benefits from excellent proximity to Highway 78 and Interstate 5, executive residential communities and a wealth of restaurants, retailers, entertainment, hotels and resorts, together creating an unmatched environment in which to live, work and play.