Rancho Bernardo Office Complex Sells for $21.5MMonday, August 27, 2012
Brookwood Financial Partners LLC of Massachusetts has purchased the three-building Bernardo Executive Center office complex in Rancho Bernardo for $21.5 million. The seller was TA Associates Realty of Boston, according to CoStar Group.
Brokerage firm CBRE, which represented the buyer and seller, said in a statement that Brookwood, with headquarters in Beverly, Mass., plans $1.4 million in capital improvements to enhance leasing efforts at the property, which was 78.2 percent leased at the time of sale. Brookwood has retained CBRE for leasing services.
The 173,244-square-foot office complex, built in 1984 and renovated in 2008, is located at 16835, 16855 and 16875 W. Bernardo Drive, spanning 9.15 acres.
“This is the first institutional office sale in Rancho Bernardo over $10 million since 2009,” said Louay Alsadek, who handled the transaction with fellow CBRE brokers Evan August, Jeb Bakke, Scott Kincaid and Mike Corbosiero.
Tenants at Bernardo Executive Center include Goodrich Financial Group LLC, Farmers Insurance Group and Fidelity National Information Services Inc., according to CoStar Group.
In its own statement, Brookwood Financial partners said it was attracted to the property for its stable existing tenant base and recent positive space absorption trends in the San Diego and Rancho Bernardo office markets.
“The Rancho Bernardo submarket is recovering at a faster pace than the broader market,” said Thomas W. Brown, Brookwood’s senior managing director and acquisitions director. “The vacancy rate in this submarket has fallen to 11.2 percent in the second quarter of 2012 after reaching a peak of 28.5 percent in the third quarter of 2009.”
This is Brookwood’s second recent acquisition in the San Diego market, following its October purchase of the Mission Valley Crossroads office building in Mission Valley.