San Diego Office Asset Lands $83M Refi
Sunroad Enterprises has obtained $82.5 million for the refinancing of Sunroad Centrum Office Tower, a 274,758-square-foot office building in San Diego. Goldman Sachs provided the five-year, fixed-rate senior loan in a deal brokered by JLL.
Previous financing included a $77.5 million CMBS loan from Wells Fargo and originated by Cantor Commercial Real Estate in 2014, according to CommercialEdge information. That note is set to expire in August this year.
The 11-story building came online in 2008 and underwent a $30 million tenant improvement program, after Bridgepoint Education vacated it in 2020. The Class A property has floorplates ranging from 24,800 to 59,500 square feet and almost 1,100 parking spaces. Upgrades included a new fitness center, restaurant and conference center, as well as the renovation of lobbies and elevators.
The property is now fully leased to multiple firms, including a Berkshire Hathaway company, Kyocera, Conam, Veterans Administration and California Government Departments. The mid-rise has a weighted average lease term of 10.5 years.
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Located at 8620 Spectrum Center Blvd., the LEED Certified building is less than 9 miles from downtown San Diego in the Kearny Mesa submarket. San Diego International Airport is within 11 miles southwest.
The property is part of the Sunroad Centrum master plan, set to include 1,245 luxury apartments, six fitness centers, five swimming pools, a 2-acre park and various other amenities. Plans also call for the construction of two more office buildings that will measure a combined 583,000 square feet.
JLL Debt Advisory Senior Managing Directors Aldon Cole and Tim Wright, along with Vice President Bharat Madan, led the brokerage team.
San Diego’s office sector holds steady
San Diego’s office vacancy rate clocked in at 18.2 percent as of March, on par with the national average, the latest CommercialEdge office report shows. The metro also registered the second-largest sales volume in the Western region in the first three months of the year, totaling $159 million. However, the average listing rate dropped 770 basis points year-over-year, falling to $42.76.
In March, Pfizer Oncology expanded its R&D footprint by signing a 230,000-square-foot lease at Torrey View in San Diego. The firm will occupy the space for 15 years.
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