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Jones Lang LaSalle assists new owner to reposition office project for lease-up
SAN DIEGO, Jan. 22, 2013 – TriGate Property Partners II, L.P. (TriGate), in partnership with San Diego-based Cypress Office Properties (Cypress), has acquired Olympia Plaza, a 130,000 square foot office and corporate headquarters project in the Kearny Mesa submarket of San Diego. The new owners plan to maximize their investment by completing major interior and exterior renovations at the three-building office complex.
“We are delighted to have completed the purchase of Olympia Plaza and look forward to working with Cypress to renovate and lease the property,” said TriGate Vice President Jason Obenhaus. Olympia Plaza represents TriGate’s first investment with Cypress Office Properties. Mr. Obenhaus added that “the acquisition continues TriGate’s national track record of purchasing assets and loans from financial institutions quickly and with certainty.”
In order to devise and execute a strategy that will lead to a quick lease-up for the building, Cypress has brought on board Jones Lang LaSalle’s Executive Vice Presidents Richard Gonor and Tony Russell, brokers with strong track records of helping to reposition office properties and quickly filling vacancies at such properties as La Jolla’s The Aventine, National City’s South Bay Corporate Center and downtown’s 450 B Tower.
Plans for Olympia Plaza, located at 3870-3890 Murphy Canyon Road, include upgrading exterior/interior common areas and refurbishing much of the currently vacant space to improve the appeal for prospective tenants.
“The property has suffered over the last three years from a previously under-funded ownership and foreclosure by an earlier lender,” said Mark Wayne, principal of Cypress. “These circumstances presented an excellent opportunity to acquire the project from a lender REO sale at attractive pricing. Now our job is to return the property to a stable, attractive condition both physically and financially.”
“Given the healthy condition of the Kearny Mesa office market, coupled with the limited supply of larger available spaces, Olympia Plaza, once repositioned, will perform well in attracting new tenants,” said Gonor. “Kearny Mesa’s central location is ideal for many local and corporate companies seeking convenient access for employees living throughout San Diego County.”
Ron Lack, Principal of Cypress, adds, “Olympia Plaza will cater to both small and large corporate office companies. Available space ranges from 2,000 to 100,000 square feet, and building signage is available, visible to the I-15 freeway.”
JLL’s recently-released fourth quarter office reports show that Kearny Mesa enjoyed the highest absorption of all central suburban San Diego markets during the fourth quarter, with 65,837 square feet absorbed, as well as for all of 2012. The total office vacancy rate in Kearny Mesa at the end of fourth quarter is 13.2 percent.
Jones Lang LaSalle is a leader in the San Diego commercial real estate market. The firm employs approximately 120 of the area’s most recognized industry experts offering services in brokerage, capital markets, facility management and project development services. In 2011, the San Diego team completed 3.74 million square feet in lease transactions and directed $34.5 million in project management and currently leases and/or manages more than 5.5 million square feet in the market.
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About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management. For further information, please visit www.joneslanglasalle.com.
About Cypress Office Properties, LLCCYPRESS Office Properties, LLC is a San Diego-based real estate investment and advisory firm specializing in the acquisition, asset management and repositioning of office, R&D and flex properties. Founded in 2009, CYPRESS focuses on enhancing performance and value through proven management, leasing and capital improvement strategies and improving sustainability through LEED certification. Please visit our website at www.cypressoffice.com.
About TriGate Capital TriGate Property Partners II, L.P. is affiliated and sponsored by TriGate Capital, LLC. TriGate Capital is a market leading real estate private equity firm focused on i) acquiring sub-performing and non-performing debt, ii) providing real estate owners with capital for asset and company recapitalizations, and iii) acquiring real estate assets where TriGate is able to add value. TriGate was founded in 2007 and manages approximately $450 million of equity capital. For further information, please visit www.trigatecapital.com.
Jennifer Whitelaw, TW2 Marketing
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