SAN DIEGO—TriGate Property Partners II, L.P., in partnership with San Diego-based Cypress Office Properties, has acquired Olympia Plaza, a 130,000 square foot office and corporate headquarters project in the Kearny Mesa submarket of San Diego. The new owners plan to maximize their investment by completing major interior and exterior renovations at the three-building office complex.

“We are delighted to have completed the purchase of Olympia Plaza and look forward to working with Cypress to renovate and lease the property,” said TriGate Vice President Jason Obenhaus. Olympia Plaza represents TriGate’s first investment with Cypress Office Properties. Mr. Obenhaus added that “the acquisition continues TriGate’s national track record of purchasing assets and loans from financial institutions quickly and with certainty.”

In order to devise and execute a strategy that will lead to a quick lease-up for the building, Cypress has brought on board Jones Lang LaSalle’s Executive Vice Presidents Richard Gonor and Tony Russell, brokers with strong track records of helping to reposition office properties and quickly filling vacancies at such properties as La Jolla’s The Aventine, National City’s South Bay Corporate Center and downtown’s 450 B Tower.

Plans for Olympia Plaza, located at 3870-3890 Murphy Canyon Road, include upgrading exterior/interior common areas and refurbishing much of the currently vacant space to improve the appeal for prospective tenants.

“The property has suffered over the last three years from a previously under-funded ownership and foreclosure by an earlier lender,” said Mark Wayne, principal of Cypress. “These circumstances presented an excellent opportunity to acquire the project from a lender REO sale at attractive pricing. Now our job is to return the property to a stable, attractive condition both physically and financially.”

“Given the healthy condition of the Kearny Mesa office market, coupled with the limited supply of larger available spaces, Olympia Plaza, once repositioned, will perform well in attracting new tenants,” said Gonor. “Kearny Mesa’s central location is ideal for many local and corporate companies seeking convenient access for employees living throughout San Diego County.”

Ron Lack, Principal of Cypress, adds, “Olympia Plaza will cater to both small and large corporate office companies.  Available space ranges from 2,000 to 100,000 square feet, and building signage is available, visible to the I-15 freeway.”

JLL’s recently-released fourth quarter office reports show that Kearny Mesa enjoyed the highest absorption of all central suburban San Diego markets during the fourth quarter, with 65,837 square feet absorbed, as well as for all of 2012. The total office vacancy rate in Kearny Mesa at the end of fourth quarter is 13.2 percent.

Jones Lang LaSalle is a leader in the San Diego commercial real estate market. The firm employs approximately 120 of the area’s most recognized industry experts offering services in brokerage, capital markets, facility management and project development services. In 2011, the San Diego team completed 3.74 million square feet in lease transactions and directed $34.5 million in project management and currently leases and/or manages more than 5.5 million square feet in the market.