San Diego Commercial Real Estate Wrap-Up – April 2020

10770 Wateridge. Image courtesy of BioScience Properties Inc.

Even during a month marked by uncertainty, San Diego’s commercial real estate market maintained relative stability with a number of key deals closing, particularly in the office sector. Following executive action at the state level in March, county authorities put in place a commercial eviction moratorium for those tenants impacted by the pandemic. While there is still no definitive date for when lockdown restrictions will be lifted in California, Governor Newsom has indicated that some businesses could reopen as soon as May 8. Here’s our April list of San Diego must-reads: 

1. DEAL – BioScience Properties sells stake in life science portfolio.

The company has a new partner in the ownership of 10770 Wateridge Circle and 6325 Lusk Blvd., two Sorrento Mesa properties totaling 235,000 square feet. According to public records, the transfer between BioScience and Harrison Street involved transactions valued at a respective $135.9 million and $22.6 million.

2. DEVELOPMENT – County unveils nation’s first net-zero archive.

Built by C.W. Driver Cos. and designed by The Miller Hull Partnership, the 25,000-square-foot facility meets LEED Gold standards. The $18.8 million property is located in Santee and houses nearly 60 county employees. At the East County Office and Archives, the public will have access to, among others, tax records and historic documents.

3. DEAL – Markstein Beverage Co. sells San Marcos industrial facility.

Stos Partners purchased the 113,500-square-foot property for $18.9 million. Kidder Mathews Senior Vice President Bob Willingham represented the buyer. The asset, located at 505 S. Pacific St., last traded in 2006, when Markstein acquired it from Novi Real Estate Co. The new owner plans to use the building as a last-mile distribution center.

4. LEASE – Dart Interests leases entire life sciences property.

Fate Therapeutics signed a 15-year lease at Scripps Northbridge Corporate Center, a 200,000-square-foot office and R&D asset. The property, located at 12278 Scripps Summit Drive, has 40,000 square feet of manufacturing space in addition to its office component. JLL represented the landlord, and Hughes Marino acted on behalf of the tenant.

5. DEAL – Kearny Mesa office property trades for $15 million.

MIG Real Estate sold the 72,803-square-foot Viewridge Business Park to Dollinger Properties. According to public records, Wells Fargo originated $10.1 million in acquisition financing for the new owner. Located at 4711, 4715 and 4719 Viewridge Ave., the asset is approximately 12 miles from downtown San Diego.

6. LEASE – Med-tech firm signs full-building Carlsbad lease.

Savills represented ATEC in the 121,541-square-foot, 10-year lease at 1950 Camino Vida Roble. The tenant is renovating the space to accommodate development, lab and distribution facilities. The company plans to relocate to the property by the fourth quarter. Cushman & Wakefield represented the landlord, RAF Pacifica.