San Diego CA— Cushman & Wakefield has announced the sale of The Yard, a 60,518-square-foot repurposed creative office building in Sorrento Mesa (San Diego), California. TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA) and one of the largest real estate investment managers in the world, acquired the property for $24.825 million, equating to a price of $410 per square foot. The property was sold by the joint venture of Locale Advisors and Long Wharf Capital.
Rick Reeder and Brad Tecca with Cushman & Wakefield’s Capital Markets in San Diego represented the seller. Bill Cavanagh and Mike Novkov of the firm also provided local market expert advisory.
“Essentially considered Class A real estate today, creative product remains highly desirable for tenants and therefore investors,” said Reeder, Executive Managing Director. “The Yard is an adaptive re-use of a single story building repurposed into a multi-tenant creative project with design elements focusing on employee experience. Integrating technology and nature, the project’s biophilic design delivers natural light to indoor workspace with added oversized glass roll up doors to enhance connectivity to an outdoor environment that embraces San Diego’s idyllic climate and lifestyle which are highly unique to the region.”
Located 5825 Oberlin Dr. and situated on over four acres, The Yard was originally developed in 1985 and underwent its significant upgrade and reconfiguration in 2017. It was approximately 90% leased to a diverse mix of tenants at the time of sale.
Tecca, Executive Director, said, “The existing creative improvements at The Yard were purposely designed to be readily reusable for future tenants and limit re-tenanting capital requirements resulting in superior bottom-line returns for future ownership, establishing a market forward approach to the creative and innovative Sorrento Mesa market, a key epicenter to San Diego’s leading growth industries.”
He added, “In Sorrento Mesa’s thriving technology hub, demand for creative office space has surpassed traditional Class A office projects with creative office conversions like The Yard achieving strike rents and tenant velocity above Class A averages. We’ve tracked several tenants migrating to creative projects locally.”
The Yard also features EV stations, a tenant electric bicycle program, and is also walkable to amenities and public transportation.