Long Beach-based Harbor Assoc. Acquires 177,900 SF Value-Add Class A Campus
Carlsbad CA— Cushman & Wakefield has announced the firm has advised Salt Lake City-based Wasatch Group in the disposition of the Cornerstone Corporate Center, a 177,917-square-foot Class A office park in Carlsbad (San Diego), California. The multi-tenant, multi-building asset was acquired by Long Beach-based Harbor Associates for $34.2 million. Cornerstone Corporate Center comprises four buildings located at 1900, 1902 and 1903 Wright Place and 1917 Palomar Oaks Way.
Rick Reeder and Brad Tecca of Cushman & Wakefield’s Capital Markets in San Diego represented the seller. Matty Sundberg and Justin Halenza also of the firm provided leasing advisory services.
Brad Tecca, Executive Director, said, “Overall, San Diego’s underlying market fundamentals are extremely healthy which has led to a significant increase in investor demand for quality real estate opportunities throughout the County. Carlsbad, which posted 515,000 square feet of positive net absorption in 2019 to lead all San Diego submarkets, is generating a buzz within the investment community. Investors are taking notice of Carlsbad’s strong tenant demand from companies within key growth industries, no new office construction, vacancy rates that are projected to drop to 10% by the end of Q2 2020, and the strong likelihood of a near-term sharp spike in achievable rental rates. The Carlsbad story is quite compelling.”
Tecca continued, “Cornerstone Corporate Center, at only 50% leased, presents an interesting value add opportunity for the buyer. The property fits right into the wheelhouse of Carlsbad’s tenant demand, having the ability to accommodate small to mid-sized tenants that is driving absorption, and presenting the buyer with a clear path to stabilization.”
Rick Reeder, Executive Managing Director, said, “Situated in the Carlsbad Airport Business Centre, a premier master-planned business park, Cornerstone Corporate Center resides in an excellent suburban office environment with prominent visibility in North County. Furthermore, the property has been institutionally managed and offers an abundance of active and social outdoor amenities, including shower/locker facilities, lap pool, barbecue & patio area, sand volleyball court plus efficient floor plates that positioned the asset extremely well in the marketplace.”
The Cornerstone Corporate Center is situated on approximately 14.19 acres located at the intersection of Palomar Oaks Way and Wright Place. Developed between 1998 and 2001, the buildings comprise a single (2)-story building and three (3)-story buildings. Property highlights include exceptional landscaping, ample parking, and unique and exquisite red-slate finishes on each of the buildings. The property has excellent proximity to San Diego County’s largest base of executive housing and is also close proximity to McClellan-Palomar Airport, San Diego County’s busiest private airport.