SAN DIEGO—Bixby Land Co. has sold AERO, a 92,463-square-foot office building at 9797 Aero Dr. in the Kearny Mesa submarket, to AVID Center for $30 million. The $326-per-square-foot sale follows a $5-million inventive redesign of the building that makes it unlike any other in this submarket.

Bixby's repositioning effort transformed the project to meet the contemporary work-environment needs of today's progressive companies. According to Bill Halford, president and CEO, “This project presented the opportunity to take an innovative approach in developing a building unlike anything else in the Kearny Mesa submarket.”

Aaron Hill, EVP and COO of Bixby, adds, “We're committed to an investment and development strategy that adds significant value through the thoughtful redesign of buildings that represent the forefront of contemporary work environments.” Hill tells GlobeSt.com, “The sale of AERO marks the completion of our repositioning strategy for this project and delivers a dynamic work environment to the Kearny Mesa market. We continue to seek both value add office opportunities and core industrial investments in San Diego.”

The extensive development plan included the full renovation of the single-tenant facility, plus the addition of approximately 20,000 square feet of leasable area. Designed by Gensler & Associates, the improvements included upgrading the east elevation with new window glazing and red rectangular framing elements. Custom overhead doors open up the building to the outdoor areas, a feature that has Bixby says been well received by tenants in several its projects throughout California.

Amenities at AERO include the signature Bixby Retreat™, an energetic outdoor gathering area, a fitness center with showers, bicycle storage, a lobby lounge area and garage parking. Tenant spaces feature polished concrete floors, exposed ceilings and open floor plans to accommodate flexible and creative interior designs.

The project is currently leased to Berkley Insurance and Vital Decisions and will be almost fully leased when the buyer, a San Diego-based college-readiness system designed to increase schoolwide learning and performance, takes occupancy of the majority of the remaining vacant space.

The buyer was represented by John Jarvis, SVP at Hughes Marino, while Bixby was represented by Derek Hulse, managing director at Cushman & Wakefield.

GlobeSt.com was unable to reach Bixby before deadline for comment on its strategy for the San Diego office market. As we previously reported, the firm recently purchased CDK Plaza, a 185,729-square-foot, class-A office complex in Portland, OR, for $33.4 million from KBS Real Estate Investment Trust, an affiliate of KBS Realty Advisors. The property, located at 2525 Southwest 1^st Ave. in downtown Portland, is scheduled to undergo significant upgrades in 2017 as Bixby furthers the reach of its value-add office strategy into primary Pacific Northwest markets.

The buyer was represented by John Jarvis, SVP at Hughes Marino, while Bixby was represented by Derek Hulse, managing director at Cushman & Wakefield.

Instant Insights /

Redux for $5M Brings Bixby $30M

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