Daily Business Report — July 12, 2010
Luxury Coronado Home to be Auctioned Aug. 12
A 2,700-square-foot family home in Coronado that has three bedrooms, three baths, a large kitchen and a detached, 900-square-foot guest home will go on the auction block on Aug. 12. The auction starts at 2 p.m. It is being conducted in cooperation with Ashlee Nicolls of Park Life Real Estate. Nicolls said a 2.5 percent buyer’s broker commission is being offered.
The home, located in Coronado Village, also has a long bar and adjoining dining room, a living room with red brick and dark wood fireplace, a staircase with wrought-iron railings and textured red brick and hardwood stairs. It has a two-car garage.
The guest home or studio has a full bath and kitchenette. A custom, built-in outdoor oven and stove also are features of the exterior.
The auction of 755 F Ave. will be limited to registered bidders and their representatives. The buyer’s broker commission of 2.5 percent is offered on the high bid. The property is available for preview daily from 1 to 4 p.m. and by appointment. For more information visit CoronadoLuxuryAuction.com or call (866) 605-7286.
Hive Sushi Louge Purchases Downtown Building
Hive Sushi Lounge, a tenant in the retail building at 1065 14th St. in Downtown’s East Village, has purchased the 3,000-square-foot building for $1.1 million. “The current market presents a great opportunity for tenants to become property owners as fewer investors compete to purchase commercial assets,” said Danny Fitzgerald of Cassidy Turley BRE Commercial who, along with Michael Burton and Robb Frye, represented the seller, Peter Manning. Tomas Schoff of American Dream Homes represented Hive Sushi Lounge.
Volt Wealth Management Opens Downtown Business
Longtime investment executives Paul Tracey and Griffin Meyers have launched Volt Wealth Management LLC located at 707 Broadway, Suite 1910, in Downtown San Diego (877) 216-5535. For the last 10 years, Tracey, the CEO, has served as the senior vice president and president of two nationally registered investment advisory firms. Prior to these executive positions, Tracey worked at a Fortune 500 brokerage firm. A native Australian, Tracey graduated from the University of California, Irvine. Meyers is Volt’s chief operating officer. After spending time with two brokerage firms, he served as the vice president for two asset management firms overseeing over $2 billion in assets. Griffin received a degree in business from the State University of New York at Buffalo.
Sales Top 30 Percent at 1Mission Condos and Townhomes
More than 30 percent of 1Mission’s condominium and townhome residences have been sold, according to Will Cureton, partner and co-founder of CLB Partners, the developer of the complex at Washington Avenue and Goldfinch Street in Mission Hills. 1Mission has 61 residences, with units still available from the low $400,000s to $1.2 million. More than 30 different floor plans are offered, each with two parking spaces and an individual storage locker. Winner of the Orchid Award from the San Diego Architectural Foundation and the Smart Award from the Urban Land Institute, 1Mission recently earned the Gold Nugget Grand Award, as the “Best in the West” mixed-use project for the 14 Western states from Pacific Coast Builders Conference.
County Industrial Absorption Stabilizing
San Diego County industrial absorption shows early signs of stabilizing after dipping to one of its lowest levels last year, accoding to a report by Cushman & Wakefield. Although year-to-date activity has yet to venture into positive territory, the negative 426,265 square feet of direct net absorption is a substantial improvement from the negative 2,409,462 square feet recorded the same time a year ago, the report said. “If we were to annualize year-to-date direct net absorption, the year should close with under 1 million square feet of negative activity, a definite change for the better when compared to the negative 3,622,317 square feet of direct absorption recorded for all of 2009,” said James Duncan, director with Cushman & Wakefield. “Given that leasing activity is on a clear upswing, with 4,848,025 square feet of new direct leases and subleases signed, direct net absorption could beat the annualized projection. How this plays out will depend on how many tenants who have signed new leases take occupancy by year-end, relative to any continued downsizing.”
The rise in leasing activity is attributed to a growing number of tenants looking to lock in lower rates for quality space. The Cushman & Wakefield report shows that year-to-date leasing activity is up 45.5 percent over the 3,330,313 square feet recorded for the period ending June 30, 2009. Similarly, owner-user sale activity has picked up tremendously as buyers have moved from the sidelines to the playing field to take advantage of compressed values. Investment activity is also contributing to the market’s improved momentum.
At mid-year 2009, all major San Diego County industrial submarkets recorded negative absorption. This year, the Cushman & Wakefield report shows that mid-county markets are venturing into positive terrain, with the I-15 Corridor and Mid-City areas recording 111,932 square feet and 126,855 square feet of direct absorption, respectively.”
The report also attributes most of 2010’s year-to-date negative absorption to one or two larger buildings being vacated in individual submarkets rather than to the mass migration of tenants that occurred last year. In the second quarter Kratos downsized in UTC, giving back 94,000 square feet at 4810 Eastgate Mall in Bridge Pointe Corporate Center. Additionally, in Kearny Mesa, AT&T vacated 48,100 square feet at 7650 Convoy Court, and in Vista, Eagle Creek vacated 90,615 square feet at 3055 Enterprise Ct.
Cushman & Wakefield reports that countywide direct industrial vacancy of 10.2 percent is up slightly over year-end 2009’s rate of 9.8 percent and up from 9.1 percent the same time last year. Many of the prominent industrial markets still report healthy single-digit vacancy, including Kearny Mesa, at 5.5 percent; Poway, at 7 percent; Torrey Pines at 8.2 percent; San Marcos at 8.2 percent; Miramar at 9 percent; and Chula Vista at 6.2 percent.
Current countywide average direct asking rental rates, which include upward weighting by R&D product, are at 85 cents per square foot per month triple net (NNN), down from 88 cents at year-end 2009, and from 95 cents as of second quarter 2009.
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