The Daily Transcript received many nominations for its commercial real estate awards from various brokers throughout San Diego. Some of these didn’t quite fit within our set categories, but were interesting and impressive deals nonetheless.
No. 1 -- The 15-year lease of the 106,584-square-foot industrial building at 9054 Carroll Way in Miramar for $16 million to tenant Ballast Point Brewing and Spirits presented a unique challenge according to Voit Real Estate Services, which represented both sides of the deal. Ballast Point was looking to expand from its initial production brewery, and needed a space with particular requirements ranging from ceiling height to power, water, floor drainage, outside storage and easy access for trucks. Voit found this property, which has been owned by HG Fenton since 1997, and met all necessary criteria, including a central location. The space will be Ballast Point’s main brewery as well as hold the bottling and canning lines, and is scheduled to open for production in the summer of 2014. Brokers for the transaction were Jeffrey Chasan, Randy LaChance and Todd Holley.
The campus is 96 percent leased to Raytheon and HDR Engineering. The 8650 Balboa Avenue building was built in 1963 as industrial, but renovated as office space in 2000, when the 8680 and 8690 Balboa Avenue office buildings were developed. The campus has LEED Silver certification and an Energy Star rating.
The $59.5 million sale was arranged on behalf of the buyer and seller by CBRE San Diego’s Louay Alsadek, Evan August, Brad Black and Andy Taylor.
Alsadek said the biggest consideration in closing the deal was the property’s major tenant, defense giant Raytheon Co., with more than 80 percent occupancy.
“During that period of time, with what’s going on in Washington D.C. with the defense budget discussion, it impacted some of the buyers’ underwriting,” Alsadek explained. “It’s reflected in the pricing.”
Alsadek said his firm was able to research some of the major contracts Raytheon is working on in the Kearny Mesa location, and the terms remaining on those projects. This served to allay some potential buyers’ concerns. “We heard many times that they were ‘cautiously optimistic,’” he said.
The significant size of the campus was attractive to potential buyers, as was the property’s ample parking and proximity to freeways. Many considered this site for its redevelopment potential, Alsadek said.