According to Matt Kelly, vice president with Burnham Real Estate/ONCOR International in San Diego, Metro Office LLC liked the 87%-occupied class B office park at 10000 N. 31st Ave. near Interstate 17 for the upside potential and leasing scenario. "There are a few expirations coming up and they're able to renew those tenants," says Kelly, who represented the buyer.
Also, the new owners expect to benefit from a growing demand for office space north of the Downtown since its goal targets professional service and small businesses as prospective tenants for the remaining space. Currently, the roster includes Collis & Associates, which provides public policy services to public and private sector clients; Guardsmark Inc., a security firm; and dental practice and psychiatric counseling group. Lease rates are quoted at $17 per sf, gross.
Kelly tells GlobeSt.com that the partnership will do minimal repairs on the infill asset and hold it for the long term. "They'll do a little TLC on it, but it's in good shape otherwise," he says, adding that the buyer will manage the property.
The seller, Roth Development Corp., built the center in the late 1980s. Kelly says the seller plans to move his capital into other areas. In the meantime, Metrocenter's buyer is actively looking for additional investments in the area, setting its sights on multi-tenant office and industrial properties.
Burnham senior vice president Tucker Hohenstein partnered with Kelly on the buy side. Kim Soule, vice president with Colliers International Inc. in Phoenix represented the seller.
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