Sale of 146,626 SF San Diego Office Campus
Cushman & Wakefield has brokered the sale of Summit Pointe, a 146,626 SF creative corporate office campus situated on 20.95 gross acres in San Diego, California.
Located at 10641 Scripps Summit Ct., the existing four-story building was originally developed in 2000 and completely repositioned in 2018 undergoing extensive interior and exterior renovations. Offering a blend of indoor and outdoor work and amenity space, the campus features drought tolerant Zen Botanical Gardens that surround the campus, an outdoor amphitheater, kitchen area, shaded seating, a state of the art indoor/outdoor fitness center, and a fully transformed lobby entrance. The property is designed for San Diego’s ideal climate.
The property is also entitled for the development of approximately 175,000 sf of additional office space. The existing building is situated on an ±11.46-acre parcel and the future development site on a ±9.49-acre parcel. Approximately 68 per cent leased at the time of sale to a single tenant, the campus was acquired by an undisclosed partnership for US $68.35 million
The seller was Newport National Corporation, a vertically integrated real estate company based in Carlsbad, which was represented in the transaction by Rick Reeder, Executive Managing Director for Capital Markets and Brad Tecca, Executive Director of Capital Markets in San Diego. Leasing advisory was performed by Jay Alexander and Tim Olson of JLL and Chris Williams of CBRE. The buyer represented itself in the transaction.
Tecca comments: "This was an attractive value-add investment offering of an adaptive re-use of a traditional corporate office building set alongside San Diego’s I-15 Corridor. Newport National recently completed a multi-million-dollar renovation to modernize the campus and enhance the overall employee work experience and now represents a premier workplace environment.
"Furthermore, the site presents the unique opportunity for the potential development for additional substantial Class A office space to help cater to the future demand from users in key growth industries in San Diego.
"The totality of the improvements made by Newport National were purposely designed and positioned to support the expansion capabilities of Summit Pointe Phase II."
Reeder adds: "Summit Pointe’s creative repositioning has advanced the project to top tier status within the I-15 corridor and neighboring submarkets. Currently serving as the corporate headquarters of a major communications/technology company, the offering provided an investor with long-term limited risk. While the impactful 'expansion through new development' capability is crucial in the ongoing ability to attract and retain world class tenants which continuously seek quality building environments."