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11/15/11
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In a recent Escondido office buy, San Diego-based Cypress Office Properties LLC has acquired a 78.4k sf, Class A, office building located at 500 La Terraza Blvd. The three-story building was constructed in 2008 and was 38 percent leased at the time of sale. Financial terms were not disclosed.
“This is one of the highest quality office buildings in San Diego’s north county region,” said Ron Lack, a principal with Cypress Office Properties. “The original developer signed two very high-quality leases with Wells Fargo Bank and RBC Capital when the building was completed in 2008. Subsequently, the economy slowed and the building ultimately went back to the lender. We were able to acquire this Class A asset well below replacement cost, creating tremendous upside potential.”
This is the third office property acquired by Cypress Office Properties in the last 12 months. The San Diego acquisition is part of the company’s overall strategy to invest in quality, value-add assets in San Diego, Orange County and Phoenix.
“This property will benefit from the ‘flight-to-quality’ trend we consistently see during a down market,” said Mark Wayne, also a principal with Cypress. “Businesses are able to lease the highest quality space available at rent levels that are significantly below the peak. With a well-capitalized ownership capable of funding lease-up costs, this property should perform well.”
CBRE’s Gary Stache, Louay Alsadek, Pat Scruggs, Evan August and Anthony Delorenzo handled the sale for the buyer and seller. Cypress has retained CBRE’s Larry Cambra and Dan Yielding to handle leasing for the property, and CBRE’s Property Management group to manage the property.
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