SAN DIEGO DAILY TRANSCRIPT www.sddt.com Real Estate Briefs December 23, 2011
The Hacienda del Mar, an upscale 66,000-square-foot garden-style office building at 12625 in Del Mar Heights was sold in a major REO (bank owned) sale for $15.6 million on the final day of the year after having been purchased for some $27.5 million in late 2007.
Michael Roberts and Steve Rowland, of Cushman & Wakefield, represented the seller, Chinatrust Bank (USA). Roberts and Rowland will receive with the Daily TranscriptEditor's Award for 2009 Deal of the Year at the Commercial Realtors Association San Diego awards on Jan. 21 at 5:30 p.m. Executive Editor George Chamberlin will present the annual CRA San Diego awards during a reception at theDaily Transcript offices.
The sale in late 2007 translated to $417 per square foot, compared to a $236-per-squarefoot price in the latest sale. Some have speculated this could be one of many such REO transactions coming in the near future.
The buyer was OF 09 Hacienda LLC, an entity of Davlyn Investments of San Diego, which will be taking about 5,400 square feet in the building.
The seller, Chinatrust Bank (USA), had taken the property back from Cardinal Real Estate Investments of El Segundo.
Cardinal had made many improvements to the building during the past couple of years. Enhancements included an improved entrance and lobby with digital directory; a conference room with video conferencing capability; updated bathrooms; locker rooms; a new roof; a new heating, ventilation and cooling tower system; a new elevator system; a new monument and building signage; and exterior landscaping.
The building also includes operable windows, showers, a deli, lockers, balconies that open up to the 7,500-square-foot open-air courtyard featuring gardens, and stone-carved fountains.
When Cardinal purchased the property, it had plans to convert the building into office condominiums, but in an economy already starting to go south, no one wanted to purchase the space. As a result, the building went from being nearly 100 percent occupied to 53 percent full. The 5,400 square feet Davlyn is taking will help. John Hale, Davlyn acquisitions director, said the building should be more or less full by the end of the year.
Davlyn has about 100 employees in San Diego and Orange counties.