BEVERLY, Mass.--(BUSINESS WIRE)--Brookwood Financial Partners, LLC (“Brookwood”), a leading real estate investment and asset management company, today announced that it has acquired the following three properties in the Carlsbad submarket of San Diego, CA: Carlsbad Executive Plaza, which consists of four, three-story buildings totaling 132,869 square feet; Carlsbad Pacific Center, which consists of three, three-story buildings totaling 130,019 square feet; and Plaza I & II, which consists of two, three-story buildings totally 89,040 square feet. These three properties are 80.3%, 69.5% and 88.9% leased respectively.
Brookwood has a long and successful track record of investing in California. Over the past two decades, the firm has owned 42 buildings totaling approximately 2.3 million square feet in the state. Since re-entering the California markets in 2012, Brookwood has acquired nine properties in the San Diego metropolitan area alone, consisting of 24 buildings and over 1.25 million square feet.
“We were able to purchase these properties at a significant discount to replacement cost and well below the average purchase price paid for competitive office properties in the San Diego area,” stated Thomas W. Brown, Brookwood’s President and Director of Real Estate Acquisitions. “We are witnessing significant improvements in the Carlsbad market, which has historically recovered later in the real estate cycle than the core San Diego sub-markets to the south. Vacancy rates have fallen to 16.4% from their high in 2010 of 30%, tenant demand is escalating and we expect rental rates will continue to rise. With these favorable market dynamics, we are confident we can lease-up our portfolio vacancies and achieve our targeted value increase. In fact, we have executed our strategy at several of the San Diego properties we acquired in 2012 and 2013, and will be marketing them for sale in the second half of this year.”
Brookwood will be investing $4.7 million in capital improvements to Carlsbad Executive Plaza, Carlsbad Pacific Center and Plaza I & II.
- At Carlsbad Executive Plaza, Brookwood plans to spend $2.3 million to re-do the lobbies and common areas, remodel the restrooms and exterior courtyard and improve the communal space.
- At Plaza I & II, the firm will invest $900,000 to upgrade the lobby and common areas, and add an expansive collaborative outdoor work and entertainment area.
- At Carlsbad Pacific Center, Brookwood plans to spend $1.5 million to upgrade the lobbies, restrooms and gyms, and to overhaul the outdoor plaza to create a collaborative work and entertainment area.
“With these acquisitions, we will be able to accommodate both small and large tenants and offer them a variety of amenity options tailored to their specific needs,” said Kurt M. Zernich, Brookwood’s Director of Asset Management. “We will be able to offer flexible suite options, creative office space and impressive amenities to smaller tenants in the 750 – 3,750 square foot range, which are in short supply in the Carlsbad market.”
About Brookwood Financial Partners, LLC – Brookwood is a Massachusetts-based private investment firm founded in 1993 that specializes in acquiring and managing commercial real estate and corporate securities on behalf of a select group of institutional and high net worth investors, family offices and trusts. Since its inception, Brookwood has invested over $750 million of equity to acquire a portfolio of 158 assets with a realized and unrealized value $2.0 billion that has spanned multiple asset classes, geographical markets and industries across the United States.
