Mission Valley Office Park
Kearny purchased the Mission Center Office Park in San Diego’s Mission Valley submarket for $29.2mm in October 2015. The project is a 181,000 sf office campus consisting of a two-story 53,000 sf building leased to the County of San Diego and two three-story 64,000 sf multi-tenant atrium style buildings overlooking the San Diego River.
Kearny was attracted to Mission Valley as the area is benefiting from more than $3 billion in new and planned investment that will add approximately 10,000 new residential units and 500,000 sf of retail amenities by 2020. Mission Valley feels like Playa Vista 10 years ago, but benefits from better access to mass transit.
Mission Center Office Park was built in 1975. It has immediate access to SR-163 and Interstate 8 and is a three-minute walk to the San Diego Mission Valley Center Light Rail Station, which connects to Amtrak and the Coaster commuter train.
Designed as classic multi-level atrium buildings, the existing “bones” provide light from opposite sides to tenant suites and floor to ceiling glass on the atrium side. Kearny is incorporating opportunities for all tenants to have an indoor/outdoor environment. Kearny is completing a multi-million dollar improvement program to upgrade the buildings’ common areas including the 2nd and 3rd floor atriums, where enhancements will provide multiple outdoor gathering options for tenants. For tenants on the ground floor, Kearny will provide private outdoor patios which will be “one of a kind” in the Mission Valley market. Also, all new landscaping provides a new, fresh first impression.
The project was 77% leased at acquisition. Kearny completed the CapX programs on time and on budget which included new gym and showers and a concierge bike program. The successful reimaging of the project, hands on asset and project management and decisive marketing and leasing has been rewarded with 92% occupancy one year after close.
Contractor: White Construction