The Deal of the Week seller was represented by a HFF (NYSE: HFF) investment sales team led by senior managing director Nick Psyllos, with assistance from senior managing director Ryan Gallagher, and CBRE Group Inc.'s (NYSE: CBG) investment sales team including Kevin Shannon, a vice chairman; Scott Schumacher and Ken White, as well as local market experts Brad Black and Rob Merkin. The buyer represented itself.
The deal was the sale of Lightwave Corporate Center, a 166,892-square-foot data center and office property at 9305 Lightwave Ave. in San Diego's Kearny Mesa area for $52.5 million, cash.
The seller was LBA Realty Fund III-Company I LLC, headed by real estate investor LBA Inc., with Steven R. Layton as the authorized signatory.
The buyer was GI DC 9305 Lightwave Avenue LLC, a unit of Menlo Park-based GI Partners, a private equity firm.
The building occupancy is split between two tenants; data center operator American Internet Services on the ground floor, and San Diego Gas & Electric on the second.
Psyllos said the rent for American Internet is about $2.30-per-square-foot (through March 2027), versus about $1.60-per-square-foot for SDG&E (through December 2017).
Psyllos also said the 10-acre lot is also entitled for an additional 75,000-square-foot office or office/industrial building, and that the 556 existing parking spaces could be expanded to 1,025.
The building was constructed in 1985 on a 10-acre site and remodeled in 2007.
Since its inception in 2001, GI has managed $8.4 billion of equity capital through its commingled fund products and separate accounts.
The seller is a partnership of LBA Realty of Irvine, a multi-billion-dollar investment and management firm with holdings in the western United States, and 2.5 million square feet of primarily office and industrial properties in San Diego County.