The 131,218-square-foot office building known as The Pyramid for the white lattice structure that is attached to its front at 7310 Miramar Road, has been sold for $13.6 million.
The buyer of the property is Torrey Pines-based Alliance Diversified Holdings at 11011 Torreyanna Road. Alliance is a private equity firm headed by Ted Eldredge, who formerly worked for CBRE and Manchester Financial.
“This building was actually a bit before its time. We will now be able to bring this dynamic property to its full potential as a creative shell in which creative companies will thrive,” Eldredge said.
The seller (assessor's parcel 343-321-27) was Apex 1., L.P. by Pyramids, LLC as its general partner and Firouz D. Memarzadeh as its president.
The seller was represented by Brandon Keith, Ryan Bracker and Bob Brady of Voit Real Estate Services’ San Diego office. Jon Boland, also of Voit, represented Alliance Diversified.
While the building has struggled over the years (a CoStar report from immediately prior to the sale pegged the occupancy at just 18.7 percent), Alliance Diversified says it is planning a major upgrade of the property "as a creative office and technology center that will be renamed the San Diego Innovation Center."
“As one of the most recognizable and architecturally notable office buildings in San Diego, the San Diego Innovation Center will be a natural fit for technology, R&D, medical/wellness, and traditional office tenants seeking creative office space,” said Keith.
“The first floor, which has historically been leased to home furnishing tenants, will now be leased to business support services and amenity-based uses in order to better serve other tenants.”
The property, developed by Fargo Industries more than two decades ago (it opened in 1992) was originally part of the Miramar Metroplex development that is still a retail center under a separate ownership. That center still offers a variety of large furniture items from sofas to baby grand pianos.
According to Boland, the new owner intends to invest in cosmetic upgrades to provide a more professional office atmosphere, and to improve suites on each floor in order to accommodate interested tenants.
“Beyond the vibrant architecture and physical improvements, our marketing of this repositioning will include adding a tenant mix that creates a lifestyle environment that appeals to all manner of professional office tenants,” Boland said.
“Ownership intends to fill the ground floor with high-end health and fitness uses, a restaurant, and business support services that will meet the demand of the new creative, medical, technology and R&D tenants we will be attracting here.”
4747 Executive Dr. Ste., 800
San Diego, CA 92121
Jan. 13, 2015 -- George Chamberlin speaks with Eric Northbrook, managing director at Voit Real Estate Services, discuss the commercial real estate market and how the industrial segment is the strongest.