A unit of Los Angeles-based Regents Properties has paid $23.55 million for the 115,414-square-foot Fairway Corporate Center in Carlsbad.
The two-building complex, located at 5540 and 5541 Fermi Court, was sold by U.S. Rep. Darrell Issa (R-Vista) and his wife Katharine.
Aric Starck, a Cassidy Turley managing director represented the buyer and the seller.
The property is 70 percent occupied, with TaylorMade-adidas Golf taking the entire 65,504-square-foot building at 5540 Fermi.
TaylorMade-adidas also occupies a portion of the adjacent building at 5541 Fermi along with Hartford Life Insurance (NYSE: HIG).
That second 49,910 building is only 31.5 percent leased. according to The CoStar Group. (Nasdaq: CSGP).
Built in 1999, Fairway Corporate Center is within the 15 million-square-foot Carlsbad Research Center master-planned office and industrial park.
Starck said there are many good values in the Carlsbad Research Center.
Carlsbad's office vacancy ended the second quarter at 12 percent, according to a survey by The CoStar Group.
“Carlsbad continues to be an attractive market for value-add buyers,” Starck said. “Buildings can still be purchased for below reproduction costs in a market with great fundamentals.”
Issa and his wife had paid $19,475,000 for Fairway Corporate Center in 2004. The buildings were 95 percent occupied at the time the couple acquired the property.
The Issas have been active in acquiring and selling office and industrial properties over the past several years.
Earlier this month, the 64,552-square-foot Tri-City Corporate Towers complex at 3142 and 3156 Vista Way were sold by the Issas for $6.85 million to San Diego-based Fenway Properties LLC, with Lawrence Jackel as principal.
In March 2011, the approximately 67,000-square-foot building at 1709 La Costa Meadows Drive in San Marcos was sold by the Issas to NV Chartwell Investments for $6.35 million, cash.
In January 2009 the Issas paid $15 million for the old 100,000-square-foot Hunter Douglas warehouse at 12400 Stowe Drive in Poway. The couple also owns a 2.59-acre industrial parcel that is also within the South Poway Business Park.
Other Issa assets include 0.72 acres at Valley Glen and Vista Way in Oceanside, and a 2,632-square-foot meeting hall along Vista Way in Oceanside.
A decade ago, the Issas paid $8.25 million for a 53,000-square-foot industrial building at 5931 Priestly Drive in Carlsbad; they retain the property.
While the Fairway Corporate Center may be a new acquisition for Regent Properties, the Los Angeles firm is also familiar with this part of Carlsbad.
In May, Regent paid $16 million for the 246,668-square-foot former Upper Deck headquarters at 5909 Sea Otter Place. The CoStar Group reported that this property known, as the Atlas Building, remains vacant despite significant marketing efforts.
Regent has embarked on a multi-million-dollar renovation to revitalize the property. These improvements will include new exterior windows and glazing throughout, and new curtain glass walls, landscaping and a parking lot.
In August, Rockstar Games leased 52,726 square feet at 229,753-square-foot building within the Carlsbad Research Center at 2200 Faraday Ave. Regent paid $40.4 million for that property in October 2013.
The other major tenant in that property -- which Regent refers to as Studio 2200 -- is Legend Films, which reportedly has 58,451 square feet in the Faraday development.
CoStar reported the Faraday property is 84.9 percent occupied.
Regent also paid $16.35 million for the 119,561-square-foot Research Center Pointe industrial building at 2210 Faraday for $16.35 million earlier this month.
The 2210 building has a 32.1 percent vacancy rate, according to CoStar.
Tenants at Research Center Pointe include Nemko USA Inc. -- the local subsidiary of a Norwegian entity that supervises safety testing for electronic equipment manufacturing -- and Medtronic Inc. (NYSE: MDT).
Both Faraday buildings, 2200 and 2210, are now under a new $41,447,500 loan from General Electric Capital Corp.
Other major buildings owned by Regent Properties in San Diego County include the 177,000-square-foot Ocean Terrace Corporate Center on Fleet Street in Carlsbad, the 103,547-square-foot Palomar Terrace property at 3115 Melrose Drive in Carlsbad, and the 75,093-square-foot Forum office building at 3207 Grey Hawk Court in Carlsbad.
Regent Properties also owns hundreds of acres in southwest Riverside County, including land in Hemet where the firm is planning a major mall.
At Winchester Road and Domenigoni Parkway near Diamond Valley Lake, Regent is planning Winchester Crossroads, which will feature hundreds of residences and a 170,000-square-foot neighborhood retail center.
Regent also has a master plan for more than 11,000 acres, comprising more than 30,000 residential lots.
Regent is developing more than 40 acres of residential land in the French Valley, near the airport of the same name, in Southwest Riverside County.
The firm is also developing some 2,000 acres in its Kohl Ranch masterplan in the Coachella Valley for a major mixed-use project.