SAN DIEGO-The former corporate offices of Chicago Title trades hands again for the second time in less than 12 months. La Jolla-based real estate investment firm, Equastone, acquired the property last July in a $10-million, value-add play. Now, the firm has flipped the property for $13.1 million.Located at 925 B St., the 66,000-sf office property was Equastone’s first Downtown San Diego office play. Equastone chairman David Bourne says the initial acquisition of the empty building was a “very opportunistic transaction.” Bourne says Equastone looked at “typical value-add strategies,” including leasing up and repositioning the property.Chicago Title had vacated the property earlier in 2005 to relocate to the Merrill Lynch building at 701 B St. Equastone acquired the building from Fidelity National Financial, Chicago Title Co.’s parent company. At the time of the acquisition, Chad Carpenter, Equastone’s CEO, told Globest.com that the firm bought the six-story, class B building with “five business plans on the property and [we] are getting activity from all groups.”However, as the company weighed various options, Bourne says a quick flip to an owner-user would work best for the firm. “By selling 925 B St. within 12 months of the closing of [Equastone Value Fund I], we are able to re-invest the sale proceeds into a replacement property on a tax deferred basis, with the opportunity to significantly boost overall returns to investors,” he adds.Tim Winslow and Scott Diggs of Grubb & Ellis/BRE represented Equastone in the transaction. The buyer was Kurt and Jenny Listug.In the deal, Equastone acquired and sold the property through EVF I, its private real estate fund that closed to investors in November 2005 with $53.5 million of equity. The fund used the equity capital to amass a portfolio of 15 value-add office properties totaling $250 million in California, Arizona, Colorado, Nevada and Texas.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.