Miramar Industrial Portfolio Sells for $28.1M
BKM Capital Partners of Newport Beach has acquired the Activity Business Center, a multi-tenant industrial property in San Diego, CA for $28.1 million, or about $175 per square foot. The property totals 160,943 square feet at 9235-9265 Activity Rd. and 9520-9530 Padgett St. in the city's Miramar submarket.
The five-building property was purchased from an affiliate of Dallas-based Lincoln Property Co., which acquired it in August 2015 for $19.15 million ($120 /SF) from Brookfield Asset Management Inc., according to CoStar data. (See CoStar COMPS #3383364.)
BKM CEO and co-founder Brian Malliet said his company acquired the industrial campus at a price approximately 39 percent below its replacement cost. “This acquisition was an opportunity to acquire a high-quality, multi-tenant industrial asset in an exceptionally strong market at a competitive cost,” Malliet said in a statement, noting the Miramar submarket outperforms many of San Diego County’s industrial hubs for occupancy and other fundamentals. Activity Business Center is currently 93% leased to 38 tenants. BKM Capital Partners plans to rebrand the complex and implement renovations, including upgrades to parking, exterior paint, landscaping, signage, lobby and outdoor common areas. The seller previously completed other cosmetic improvements. CoStar Group data indicates that the Padgett Street properties were originally constructed in 1971, and the Activity Road buildings were completed in 1980 and 1987. Cushman & Wakefield represented Lincoln Property Co. in the latest sale, and BKM handled the sale in-house. Please see CoStar COMPS #4152383 for additional information on this transaction.