Constructed and sold in 1998 for $14 million, the office asset was acquired by The Shidler Group and its joint venture partner The Praedium Group LLC just last year for only $11 million. Previous owner Hibiscus LLC sold the property to the JV at a reduced rate because the building's sole tenant at the time of sale, Cadence Design Systems, had announced that it would relocate its regional headquarters out of the building in June of 2003. At the time of the 2002 sale, Matt Root of The Shidler Group said he expected the value of the asset to grow with the addition of new tenants to the property, as Cadence had been paying a below-market rent.

During its ownership period, The Shidler Group and The Praedium Group landed St. Bernard Software and PDF Solutions Inc. as tenants at Carmel Corporate Plaza for a total of 65,800 sf. Cadence also elected to remain in the facility, although it downsized its space to 10,124 sf. At the time of sale, the office asset was 100% occupied.

Located at 15015 Ave. of Science, Carmel Corporate Plaza is part of Rancho Bernardo's high-tech Carmel Mountain Ranch Development. This address was part of what attracted Harsch to the property, as the firm's president Jordan Schnitzer tells GlobeSt.com. "Although there continues to be significant vacancy in Rancho Bernardo, this particular street has always had high occupancy," he points out. In addition, the property is located next to "excellent neighbors," Schnitzer notes.

Harsch is planning some upgrades for the building, although it is "in good shape," having an "excellent history of ownership," according to Schnitzer. He tells GlobeSt.com that the lobby will be renovated and a new card-entry system will be installed.

The acquisition of Carmel Corporate Plaza marks the second office asset that Harsch has added to its growing portfolio. The Portland, OR-based firm currently owns and operates 100 properties in seven states. With the addition of Carmel Corporate Plaza, its San Diego portfolio now encompasses approximately 1 million sf.

Instant Insights /

$17.6M Buys Carmel Corporate Plaza

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