San Diego CA— CBRE announced it has arranged a total of 28.3 million in financing for the purchase of a medical office building in Tustin, Calif. and an industrial property in San Diego to be occupied by Manscaped.
Trevor Damyan of CBRE’s Downtown Los Angeles office arranged one 10-year fixed rate loan for the $43.6 million purchase of both properties on behalf of the buyer, a private local investor. CBRE’s Anthony DeLorenzo, Gary Stache, Bryan Johnson, Todd Tydlaska and Doug Mack represented the seller in the office transaction.
The 51,588 square-foot medical office building, located 2742 Dow Ave., was originally built in 1979 and is fully-leased to Orange County-based integrated healthcare system MemorialCare. The two-story, freestanding asset features a data center and is within one-half mile of the Tustin Commuter Rail. MemorialCare recently sub-let the entire space to Doctor’s Best, a nutritional supplement company, which initiated multi-million dollar improvements to the space. Their other location is the building next door.
The industrial property, located 10054 Old Grove Rd in the Scripps Ranch neighborhood of San Diego, was originally built in 1971 and renovated in 2018. The 85,824 square-foot building is currently vacant, but will be fully occupied by startup online shaving company Manscaped by the end of the year. The property is within two miles of I-15, a major freeway that connects Scripps Ranch to the rest of San Diego County.
“The motivation for the buyer was as much about the strategically positioned real estate as it was about the safe triple-net leases with quality tenants that help guarantee a steady cashflow during uncertain times,” said Damyan. “Cap rates on these types of properties continue to compress.”
He added, “We are thrilled to have secured financing for the purchase of these two assets after overcoming many challenges throughout the process. Lenders were concerned with the fact that both buildings were vacant and in the middle of extensive tenant improvements, but we were able to find a lender that was collaborative and saw this as a fantastic opportunity, helping us close in a mere 43 days from application.”