Property draws multiple offers as demand for well-located suburban office properties remains high
Los Angeles – CBRE announced the sale of office campus Silverhawk Corporate Center in Murrieta, CA to Coseo Properties Inc. for $14.3 million.
CBRE’s Matt Pourcho, Gary Stache, Anthony DeLorenzo, Doug Mack and Sammy Cemo represented the seller, Silverhawk Partners, in the transaction. Coseo represented itself. In August, the San Diego-based real estate investment firm purchased another regional suburban office center in Carlsbad for $14.3 million.
The 80,200 square-foot property, located at 38975 and 38977 Sky Canyon Drive, is a Class A high-image suburban office project featuring two buildings on 6.05 acres. At the time of the sale, the project was 92 percent leased by such tenants as Universal Health Services, Inc., Magnecomp Corp., Edward D. Jones & Co. and GoDaddy. The campus also boasts an expansive courtyard, water installations, koi pond and onsite amenities. The building is glass lined with hillside and golf-course views.
The property sits adjacent to State Highway 79, offering great visibility and easy access. It is located at the corner of Winchester Road and Murrieta Hot Springs Road, two of southwest Riverside’s best economic corridors with abundant amenities. In addition to the surrounding retail businesses, the campus is adjacent to the Golf Club of Rancho California and French Valley Airport.
“Murrieta has more than twice the population growth than any other Southern California region, and well-located suburban office properties remain very popular,” said Pourcho. “Due to low vacancies in the area, rental rates are expected to surpass the previous peak as seen in gateway office markets. This sale gives Coseo a great opportunity to bring rents up to market and take advantage of excellent fundamentals not seen on other office markets. You can buy these properties for almost half of replacement costs.”
Rent growth is projected at 18.3% rent growth in Riverside County over the next 5 years, according to CBRE Econometric Advisors. The San Diego and Inland Empire office market continues to set new records as they merge together, lifted by strong market fundamentals, according to CBRE research. Demand in the area is largely driven by government, public service and healthcare-related tenants. Buoyed by the e-commerce boom, the availability of more affordable housing and the addition of amenities have transformed the Inland Empire from sleepy commuter suburbia into a vibrant live-work-play environment.
“This transaction received strong interest and multiple offers, reflecting continuing great demand for high-image suburban office buildings in best-in-market locations,” said Stache. “Suburban markets that offer urban-like live-work-play environments continue to capture strong demand from users and investors alike.”
Los Angeles – CBRE announced the sale of office campus Silverhawk Corporate Center in Murrieta, CA to Coseo Properties Inc. for $14.3 million.
CBRE’s Matt Pourcho, Gary Stache, Anthony DeLorenzo, Doug Mack and Sammy Cemo represented the seller, Silverhawk Partners, in the transaction. Coseo represented itself. In August, the San Diego-based real estate investment firm purchased another regional suburban office center in Carlsbad for $14.3 million.
The 80,200 square-foot property, located at 38975 and 38977 Sky Canyon Drive, is a Class A high-image suburban office project featuring two buildings on 6.05 acres. At the time of the sale, the project was 92 percent leased by such tenants as Universal Health Services, Inc., Magnecomp Corp., Edward D. Jones & Co. and GoDaddy. The campus also boasts an expansive courtyard, water installations, koi pond and onsite amenities. The building is glass lined with hillside and golf-course views.
The property sits adjacent to State Highway 79, offering great visibility and easy access. It is located at the corner of Winchester Road and Murrieta Hot Springs Road, two of southwest Riverside’s best economic corridors with abundant amenities. In addition to the surrounding retail businesses, the campus is adjacent to the Golf Club of Rancho California and French Valley Airport.
“Murrieta has more than twice the population growth than any other Southern California region, and well-located suburban office properties remain very popular,” said Pourcho. “Due to low vacancies in the area, rental rates are expected to surpass the previous peak as seen in gateway office markets. This sale gives Coseo a great opportunity to bring rents up to market and take advantage of excellent fundamentals not seen on other office markets. You can buy these properties for almost half of replacement costs.”
Rent growth is projected at 18.3% rent growth in Riverside County over the next 5 years, according to CBRE Econometric Advisors. The San Diego and Inland Empire office market continues to set new records as they merge together, lifted by strong market fundamentals, according to CBRE research. Demand in the area is largely driven by government, public service and healthcare-related tenants. Buoyed by the e-commerce boom, the availability of more affordable housing and the addition of amenities have transformed the Inland Empire from sleepy commuter suburbia into a vibrant live-work-play environment.
“This transaction received strong interest and multiple offers, reflecting continuing great demand for high-image suburban office buildings in best-in-market locations,” said Stache. “Suburban markets that offer urban-like live-work-play environments continue to capture strong demand from users and investors alike.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
