Kilroy Realty Corp. has purchased The Heights at Del Mar office park in San Diego for $126.35 million, in what brokers said is the region’s third-largest commercial real estate deal of 2013.
Los Angeles-based Kilroy acquired the campus in the Del Mar Heights submarket from Prudential Real Estate, according to brokerage company Cassidy Turley, which represented the buyer and seller.
The 218,940-square-foot property, at 12770-12790 El Camino Real, includes a multitenant office building, a life-sciences building and an entitled 4.2-acre land parcel that brokers said can accommodate an approximately 90,000-square-foot office or life science facility.
The Heights at Del Mar is anchored by Neurocrine Biosciences (Nasdaq: NBIX) and the law firm Knobbe Martens Olson & Bear, with other tenants including Allen Group Architects and Southwest Value Partners.
The campus sits on 13.8 acres near Interstate 5 and also includes a fitness center, outdoor basketball court, walking trails and a 600-seat outdoor amphitheater.
Cassidy Turley broker Rick Reeder said the next phase of new speculative development in the high-demand Del Mar Heights neighborhood is not expected for three to four years, and the acquisition likely gives Kilroy “a strategic window of opportunity” to meet upcoming demand as the economy continues to improve.
Cassidy Turley said the deal, brokered by Reeder and Brad Tecca, was the largest in the Del Mar Heights submarket since 2007.
— SDBJ Staff Report