Graymark partners with Blue Vista Capital Management – purchases two North San Diego County office R & D projects
San Francisco, CA, June 2015 – Graymark Capital, Inc., in partnership with Blue Vista Capital Management, has acquired two creative office/R&D assets in Carlsbad, California totaling 202,061 square feet for a combined $25.7 million.
3209 Lionshead is the corporate headquarters of prAna Living, a lifestyle brand committed to weaving sustainable practices into its operations and supply chain. prAna Living is the first major apparel company in North America to offer Fair Trade USA-‐certified product and is one of the portfolio brands of Columbia Sportswear Company (NYSE:COLM). The 74,774 sf asset was constructed in 2008 and is improved with creative office interiors, outdoor amenities and functional warehouse space. This property was an appealing investment for Graymark due to the strength of the tenant, strong cash yield, discount to replacement cost and excellent market fundamentals. The property was purchased through Rick Reeder and Brad Tecca of the San Diego office of DTZ.
@Palomar is a five building, 127,287 sf creative office/R&D property located at 6349 & 6359 Paseo Del Lago and 1939, 1945 & 1949 Palomar Oaks Way. Currently, the portfolio is 45 percent leased. This project is well-‐located, with excellent freeway access, and is poised to take advantage of strong tenant/user demand for space in the rapidly tightening Carlsbad flex/R&D market. Graymark is planning to execute a repositioning plan that includes major interior upgrades and minor cosmetic improvements to the exterior. The market-‐ready renovation of the vacant space will bring the portfolio to a tech/creative quality that is highly sought after in this market. The overall business plan is to invest capital strategically to bring the portfolio to a level of finish and appeal that is frequently found in the best locations of north San Diego County. The property was purchased through Bob Prenderast of the San Diego office of JLL. The property will be leased and marketed by Bob Willingham of Kidder Mathews.
The assets are located within the 14 million-‐square-‐foot industrial/R&D market of Carlsbad, CA. Carlsbad is home to a number of high quality technology, medical and lifestyle
tenants. Recent leasing activity has produced increasing rates of absorption and suggests that this trend is likely to continue.
About Graymark Capital
Graymark Capital, Inc. is a real estate investment firm located in San Francisco, California that invests in commercial properties throughout the West Coast. The company has acquired 700,000 sf of institutional quality property valued at $165 million over the last 3 years. Founded by CEO Brian Hecktman, with Managing Director/CFO Jeff Hoppen and VP of Acquisitions Rick Lafranchi, the company focuses on opportunities where it can create significant value by capitalizing on the team’s collective experience from over $2 billion of real estate investment and development over the past 20 years.
About Blue Vista
Blue Vista Capital Management was founded in 2002 in Chicago, with a mission to co-‐invest with successful investors and developers of all real property types across the U.S. and select international markets. To date, Blue Vista has participated in direct investments and joint ventures representing over $5.7 billion in total capitalization. The firm has raised in excess of $1.5 billion in equity through four closed end funds, two separate accounts and one joint venture relationship. The firm’s clients include one of the world’s largest university endowments, the 4th-‐largest sovereign wealth fund, and several state pension funds, six of the largest insurance companies in the world and large family offices.