KEARNY, CA and IRVINE, CA – In one of the only industrial or business park transactions in San Diego this year, Irvine, Calif.-based CIP Real Estate, in joint venture with Baltimore, Md.-based Alex. Brown Realty, has purchased an 80,410-square-foot project for $7 million from Union Bank. The six-building industrial/flex park is located at 8125 to 8248 Mercury Court in Kearny Mesa, Calif. For the past 15 years, Union Bank has housed its loan and credit card service center in the project which is being relocated to a new facility.
CIP Real Estate’s business plan is to convert the project that it has renamed “Mercury Tech Center” back to its original multi-tenant industrial and flex configuration, with unit sizes ranging from 3,700 to 16,700 square feet. The total renovation costs planned by CIP Real Estate will be approximately $3 million and will include all new interior improvements designed for a variety of users. New, fully renovated suites will be available for occupancy starting in February 2014.
“We are very pleased to have the opportunity to purchase this project since very few parks like Mercury Tech Center come available in San Diego each year. This one in particular allows us to add value through remodeling and rebranding,” said Chuck McKenna, principal of CIP Real Estate.
The new leasing assignment for Mercury Tech Center will be handled by Mickey Morera and James Duncan of Cushman & Wakefield’s San Diego office.
Union Bank was represented by Louay Alsadek and Evan August of CBRE, while CIP Real Estate represented itself in the transaction. Additionally, Scott Peterson of CBRE’s Capital Markets Group arranged the acquisition and construction financing for the project through Sabal Financial Group.
CIP Real Estate Acquires 80,000-Sq.-Ft. Industrial/Flex Portfolio in Kearny Mesa, Calif.
Since 1998, CIP Real Estate and Alex. Brown Realty have jointly acquired 18 projects that total more than 2.6 million square feet with a value in excess of $275 million. The Mercury Tech Center project fits perfectly into the joint venture’s value-added program.
“We value our relationship with CIP and look forward to working with them once again,” commented Tom Burton, ABR’s chief investment officer. “Once our repositioning efforts are complete, we anticipate strong demand for this asset.”
Alex. Brown Realty, Inc. is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
CIP Real Estate is a real estate investment company based in Irvine, Calif., specializing in the acquisition, development, repositioning and management of office, business and industrial parks throughout California, Nevada, and the Carolinas. www.ciprealestate.com.