Commercial real estate services provider Cassidy Turley recently announced that Kilroy Realty Corporation (NYSE: KRC) has purchased The Heights at Del Mar office park for $126.35 million. The acquisition represents the largest sale transaction within the Del Mar Heights submarket since 2007, according to Rick Reeder and Brad Tecca, of Cassidy Turley, who represented both KRC and the seller, Prudential Real Estate.
The Heights at Del Mar is a 218,940-square-foot, Class A campus located at 12770 to 12790 El Camino Real in the epicenter of Del Mar Heights, one of the most sought-after suburban real estate markets on the West Coast. The project encompasses a Class A multi-tenant office building, state-of-the-art life science building, and an entitled 4.2-acre parcel of land that can accommodate an approximate 90,000-square-foot office or life science facility.
“This campus is uniquely positioned with fully leased status to a premier roster of credit tenants and the ability to deliver a new building to the Del Mar Heights submarket where large blocks of contiguous space are in high demand,” said Reeder, managing director with Cassidy Turley. “As the local, regional and U.S. economies continue to improve, we expect to see further increases in tenant demand leading to a reduction in overall vacancy. This, coupled with the fact that the next phase of new speculative development in Del Mar Heights is not expected for at least another three or four years, gives KRC a strategic window of opportunity to meet this expected demand.”
The Heights at Del Mar is anchored by Neurocrine Biosciencese (NASDAQ: NBIX) and Knobbe Martens Olson & Bear, the nation’s third largest intellectual property law firm. Both of these firms have long-term commitments in place and combined occupy 94 percent of the campus. Additional tenants are Allen Group Architects, Southwest Value Partners and Backplane.
“This acquisition gives KRC an even stronger foothold in the Del Mar Heights submarket,” said Steve Scott, senior vice president with KRC’s San Diego office. “The Heights in Del Mar is consistent with KRC’s strategy of growing its commercial real estate portfolio with quality assets in locations with strong fundamentals including access to transportation and abundant amenities. The ability to expand the campus to meet growing demand created by the synergy of the area and burgeoning cluster industries was of great appeal to us.”
The Heights at Del Mar sits on 13.81 premier acres and offers numerous on-site amenities, including a fitness center, outdoor basketball court, walking trails, and an outdoor amphitheater with seating for 600 people. The campus offers prominent visibility adjacent to the Interstate 5 Corridor, which provides easy access to central San Diego and Orange County. Visit www.cassidyturley.com for more information about Cassidy Turley.