According to Michael Roberts of Cushman & Wakefield's Capital Markets Group, the sale of the 12625 High Bluff Dr. property "represents the beginning of a trend in San Diego County toward larger, highly sought-after, REO commercial real estate sales." He says the sale, "is a signal the process of foreclosures to REO sales is under way locally."
Davlyn acquired the property from Chinatrust Bank, which was represented by Roberts along with Cushman & Wakefield's Steve Rowland, Eric Northbrook and Chris High. Davlyn Investments represented itself, and lending was arranged by Annalena Thompson of Torrey Pines Bank.
John Hale, Davlyn's director of office acquisitions, says that the company has been trying to acquire property in the Del Mar Heights submarket for more than five years. "Now, due to the recession, we've finally been able to pick up one of the most prominent buildings in San Diego County's premier office corridor," he says.
Hacienda Del Mar is a three-story building that is described as garden atrium boutique office space. Built in 1987, it is situated on one parcel totaling 3.49 acres. Chinatrust Bank repossessed the property from Cardinal Investments, which acquired it in 2007 for $27.5 million.
Hale noted that Hacienda Del Mar historically has operated at 97% to 100% occupancy. However, because of the previous owner's plan to sell off the building in pieces as office condominiums, occupancy slipped to 53%. Davlyn expects the vacant space to lease up in eight to nine months.
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