“Carlsbad Airport Corporate Center is an ideal addition to our growing portfolio in the San Diego area,” said Matt Haugen, assistant vice president at Buchanan Street Partners. “With a lack of new development, Carlsbad has seen a substantial drop in vacancies over the last twelve months and we believe this will lead to significant rent appreciation in the near term.”

Buchanan Street was attracted to the current cash flow returns from the fully-leased building. The property has an unmatched parking ratio which differentiates itself from its competitors. The company plans to improve the common areas to meet existing and future tenant needs.

The Carlsbad office market has a current vacancy rate of approximately 17%, a dramatic improvement from the peak 35% vacancy experienced in 2007. The improved market performance has led to a 10% increase in lease rates over the last two years.

“The strong Carlsbad submarket and high caliber of tenants at the property made this an attractive acquisition for us,” added Haugen. “The project benefits from a location that is close to executive housing, major freeways, and abundant amenities and retail services in the area.”

Buchanan Street Partners represented themselves in the transaction, while the seller was represented by Rick Reeder and Brad Tecca of DTZ Capital Markets. Buchanan Street Partners is a national real estate investment management firm that invests debt and equity capital on behalf of institutional and private investors.