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1/23/26
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In a San Diego office buy, Crescent Coast Partners, in a venture with Tryperion Holdings and Stos Partners, purchased Terraces at Copley, a 205.7k sf, Class A office building in Kearny Mesa, for $30 mil, or $145/sf. The asset, located at 5887 Copley Dr, was sold by Peakstone Realty Trust.
Perched atop a bluff with 360-degree views of Interstate 5, Highway 52 and the surrounding area, the six-story Terraces stands as one of the most recognizable office properties in San Diego County. The 2009-built property features large, efficient and divisible 36k sf floor plates, unobstructed views, a full-service café and an array of on-site amenities including showers and lockers, a fitness facility with yoga and dance rooms, an outdoor patio and workspace, an athletic sports court, outdoor lounge and viewpoint, a putting green and covered parking with EV charging stations.
Terraces has served as the corporate headquarters for Guild Mortgage since 2016. The property was 70.7% leased at time of sale, providing a stable income stream and opportunities for value creation through lease-up of the remaining vacancy.
Newmark Executive Managing Directors Brad Tecca and Rick Reeder, in collaboration with Co-head, U.S. Capital Markets Kevin Shannon, represented both parties in the transaction.
"The sale of Terraces generated significant investor interest, signaling growing confidence in the office sector from both equity and debt capital sources," said Tecca. "This transaction presented an early-cycle opportunity to acquire a best-in-class Class A asset at an attractive basis with substantial near-term upside potential. With some of the strongest market fundamentals on the West Coast, we anticipate office transaction volume in San Diego to increase significantly as we enter 2026."
The San Diego office market is showing resiliency amid broader economic shifts and demonstrating signs of stabilization. San Diego’s suburban Class A and B vacancy concluded 2025 with vacancy at 13.7%. Sublease space reduced to 3.2% of inventory with a modest positive net absorption of 9,046 square feet in the quarter, according to Newmark Research.
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