San Diego Commercial Real Estate; Keeping Current with an ever-changing market
TFTM- October Edition
“Do not judge me by my success, judge me by how many times I fell down and got back up again.” – Nelson Mandela
San Diego will let a private developer build and manage a public park on waterfront land opposite San Diego Bay instead of doing so itself.?Monday, City Council members unanimously approved a park agreement with real estate investment trust IQHQ for a 1.5-acre parcel, referred to as Block 1A, at the former Navy Broadway Complex downtown. This site will be adjacent to IQHQ’s RaDD project and serve as an example of the goal of making this project accessible to public use.?The action means the city will forfeit a long-held right to lease the block from the developer, and it makes the builder responsible for the creation of a mostly passive public park that it will manage and control through May 31, 2117.
A more than year-long experiment in outdoor dining meant to help financially battered San Diego restaurants outlast the pandemic will now become a permanent fixture, thanks to action taken Tuesday by the City Council. A first-of-its-kind program for San Diego, the new outdoor dining regulations will allow restaurant owners to extend their outdoor seating onto sidewalks, and in metered and unmetered parking spaces in front of their venues as long as they pay a fee, a requirement that up until now has not been imposed. Spaces as Places, as the program is known, will go into effect next July when the current program expires. It will include a number of design and safety regulations that will permit restaurants to install platforms for seating along unpainted, yellow or green curbs as long as they are at least 20 feet away from an intersection, street corner, alley or driveway.
Solana Beach-based BioScience Properties Inc., in conjunction with Harrison Street Capital, paid $41.3 million for one flex and two office buildings in Sorrento Mesa. The complex at 9980 Huennekens Street and 10020 Huennekens Street has been referred to as Sorrento Heights. It is currently a two-story office and R&D property. "We're going to convert the interior to life science space," said Carly Lake, a principal with BioScience Properties who said her company's plans are to start construction right away and complete the project in the second quarter of next year.?"The location is great, the area has very low vacancy, and we have a lot of experience building lab space," she said.?The seller was listed as DRA Advisors LLC of New York City in conjunction with Cypress Office Properties of San Diego. It was represented by Kevin Shannon, Ken White, Brunson Howard, and Paul Jones of Newmark.
Tenants in the 60,291-square-foot building at 9980 Huennekens Street include Meridian Auto Parts and Invetech, among others. The 32,539-square-foot building at 10020 Huennekens Street is currently fully occupied by Sotera Wireless. Some of the upgrades included renovated restrooms with updated showers and lockers; building and monument signage; and upgraded outdoor meeting and gathering areas.?The property features floor-to-ceiling windows in all suites, highly efficient spaces, creative office build-outs available with exposed wood ceilings, and the ability to add roll-up doors for R&D uses.
BioScience Properties is a fully integrated commercial real estate firm focused on life-science, office, and industrial properties in the western United States.?The company said it "strives to bring a personal touch to the execution of all projects to ensure the success of partners and tenants alike." Some of the more prominent properties that BioScience Properties has redeveloped include a 184,000-square-foot building at 10770 Wateridge Circle (known as Ten 770) in Sorrento Mesa; an 83,000-square-foot building at 10222 Barnes Canyon Road in Sorrento Mesa; and a 64,000-square-foot redevelopment of a life science space at 10240 Flanders Court in Sorrento Valley.
PS Business Parks, Inc. announced Tuesday that it closed on its sale of the Lusk Business Park in Sorrento Mesa to an affiliate of Longfellow Real Estate Partners for $315.4 million.?The net proceeds from the sale, after payment of transaction costs, were $311.1 million, according to PS Business Parks.?Longfellow has future plans of converting this project to a modern life science campus. Longfellow has continued to be one of the most active buyers of real estate in the Sorrento Mesa submarket.?
Healthpeak Properties paid $19.85 million for the landmark Wateridge Pavilion building at 10525 Vista Sorrento Parkway in Sorrento Mesa, according to CoStar. The 62,156-square-foot building is known for its expansive glass, atrium design, and water features, including a fountain and lush landscaping. The seller was a unit of Premier Realty Management of San Diego, which paid $16.3 million for the property in August 2017. While Healthpeak officials couldn't be reached for comment, the company is perhaps best known for its development and acquisition of space for the life sciences industry. The firm also owns and develops medical office projects, senior housing and assisted living facilities.
Healthpeak Properties has been very busy in San Diego County lately. In June, the Denver-based company announced it would start construction on a 163,000-square-foot expansion of the Sorrento Gateway project that is slated to be coming online in 2023, according to CoStar.?In the meantime, tenants such as the law firm Cooley LLP and Zentalis Pharmaceuticals are filling up the Boardwalk on Science Center Drive in Torrey Pines. Turning Point Therapeutics is occupying the entire 185,000 square feet within the Callan Ridge development, which is within the Torrey Pines Science Park.
San Diego, Boston, Minneapolis, and Washington, D.C., have entered the top 20 Cities for STEM job growth for the first time as strong economic trends point to robust future growth.
Flock Freight, an Encinitas trucking logistics firm that aims to revolutionize the way freight moves across the country, has landed another $215 million in venture capital — making it San Diego’s latest startup unicorn. The funding round, led by Softbank Vision Fund 2, comes on top of $113.5 million raised by Flock Freight in December. The company now joins Seismic, Tealium, Shield AI and ClickUp as local, privately held startups with valuations topping $1 billion.
San Diego-based productivity software developer ClickUp said this morning that it has raised a huge, $400M Series C funding round, which gives it a valuation of $4 billion.
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Programmatic Account Manager - Camelot Strategic Marketing & Media
3 年Love the call out on the outdoor dining changes. Was dining in Little Italy recently. While I was irked at first about the parking situation created by expanding into the streets, I soon realized how lovely it was to stroll through a vibrant outdoor dining scene on foot! I’d be lying if I said it didn’t feel a bit more metropolitan than most of my other nights out across San Diego county.