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9/11/18
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35 North, a newly-renovated, 94.7k sf multi-tenant office campus in Mission Valley, was acquired by CIF Group for $19.75 mil ($209/sf). The asset was sold by a partnership between San Diego-based Cypress Office Properties and HighBrook Investors based in New York City.
Built in 1981, the property consists of three low-rise office buildings located at 3530, 3550 and 3570 Camino Del Rio North. The sale also included the campus’ amenities building at 3522 Camino Del Rio North. In 2017 the seller had made extensive capital improvements to significantly enhance and modernize the campus.
Prominently located along Camino del Rio North, the 35 North campus sits on 4.27 acres and features newly revitalized building exteriors, interior lobbies and common areas. The property design includes an open-air courtyard with covered outdoor seating areas, a tranquil water feature, and colorful Southern California landscaping, all of which help promote collaboration and relaxation. The separate amenities building also contains racquetball courts and shower and locker facilities.
Rick Reeder, Brad Tecca and Derek Hulse with Cushman & Wakefield represented the seller in the transaction.
“35 North was more than 85% leased to a highly-diversified collection of nearly 30 companies with no tenant occupying more than 15.5% of the property, providing strong in-place income and fixed annual rate increases for a consistent rise in cash flow,” noted Tecca. “The property’s investment appeal is further enhanced by recent renovations that greatly strengthen its value-add position in combination with its location in Mission Valley, which continues to experience strong tenant demand and rental rate growth—the property may also invite the potential to bring existing rents up to more standard market rates.”
According to Cushman & Wakefield’s latest office market report, Mission Valley had a single-digit vacancy of just 8.3% at the midway mark of 2018, ranking among the lowest office vacancies in all of San Diego County.
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