written by
Autumn Valencia

Freestanding industrial building closes for $7,515,500 in Carlsbad 

Intersection Senior Director, Henry Zahner represented the seller in the sale of the North County freestanding industrial building for $7,515,000. The 42,260 square-foot property consists of vast warehouse space that has been immaculately kept.

The facility was previously occupied by Newport Blue, Skivia Graphics, and other top manufacturers. Today, the facility located at 2258 Rutherford Rd. in Carlsbad CA, is the future home to the new owner-user who has business interests that will occupy the facility and compliment the surrounding area.

The property’s location within the Carlsbad Research Center in coastal North County is a current ‘hot market’ for Biotech and Life Science sectors where many competing properties have been snapped up in recent months. Both the seller and buyer couldn’t have been happier with the outcome with both a competitive price point and an easy close.

For more information on this deal or if you would like to discuss Intersection representation further, please reach out to Henry Zahner at 760-889-7943 or hzahner@intersectioncre.com.

Autumn Valencia is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. For general and marketing inquiries, please contact Autumn at avalencia@intersectioncre.com 

written by
Kyle Clark

Freestanding Dairy Queen in Spring Texas is acquired with 19 years remaining on a 20 year, absolute NNN lease.

Intersection Senior Director, Kyle Clark represented the buyer in the sale of the freestanding drive-through Dairy Queen for $3,100,000. The 3,098 square-foot property is situated in a regional trade area, which has undergone a new wave of retail growth. Approximately 400,000 SF of retail has been added to the surrounding area within the last five years.

The design is the latest Dairy Queen prototype, with a larger format, reflecting the refined direction that the corporation has adopted following Warren Buffett’s acquisition of the brand. This location is currently outperforming the sales of other Dairy Queens in the Greater Houston area and is continually meeting and surpassing profit margins even throughout the COVID-19 indoor restaurant closures.

Mr. Clark was approached by the buyer’s family attorney to locate a suitable property to complete the buyer’s 1031-exchange, following the sale of their multi-family apartment project. The buyer’s goal was to shelter their substantial gain while relieving them of the daily property management tasks associated with a substantial apartment complex. Kyle was hyperfocused to find a property that would be truly passive and self-sufficient in ownership responsibilities that will also provide a reliable stream of income to sustain them for the remainder of their lifetimes. Eventually, the property will pass to the next generation of kin established through their family trust. Although the buyers are San Diego residents, the focus was on properties outside California to maximize the return with lower Cap-Rates. Following this sale, a second NNN property has been identified which will also be purchased by year-end to complete the exchange requirement.

For more information on this deal or if you’d like to discuss Intersection representation further, please reach out to Senior Director Kyle Clark at 619.997.9537 or kclark@intersectioncre.com

Autumn Valencia is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. For general and marketing inquiries, please contact Autumn at avalencia@intersectioncre.com 

written by
Kyle Clark

Addressing Common Misconceptions on San Diego Ballot Measure E

Next month, San Diego voters will have the opportunity to weigh in on Measure E which, if approved, will eliminate the 30-foot height limit in the Midway Planning Area surrounding the Sports Arena. Over the past couple of months, we’ve heard loads of discussion about this measure and what effect it will have on our community. Aside from the traditional media sources, local internet discussion boards like NextDoor are alive with commentary and like most propositions, the information being shared ranges from “Interesting” to “You’ve Got to be Kidding?”. As a local specific to the measure’s zipcode, and commercial real estate agent with over 20 years of experience, I want to neutrally shed light on the common misconceptions surrounding measure-E and hopefully offer insight in contrast to local fearmongering

Misconception-This measure will expose all of our coastal areas to unlimited building heights, which will result in a landscape similar to Waikiki Beach offering no views available more than a block inland from the shore.

Fact- “This measure pertains Only to the zoned area within the Midway Community Planning District. It will not have any effect on the regulations affecting other properties in the Peninsula, Ocean Beach, Pacific Beach or Bay Heights neighborhoods. The current 30 ft. limits will continue to apply in all these other areas”

Misconception-If this measure passes, developers will have no limit to how much they can build.

Fact- “While the 30-foot height limit will be removed, any new development will still need to obtain approval from the Midway Planning Group and the City of San Diego. The City Zoning ordinance incorporates a Floor Area Ratio (FAR) factor, which limits how much density can be placed on a particular property. If you want to build to a 200 foot height, the FAR will prohibit that. For instance, if the FAR is 3.0 and the land parcel is 10,000 square feet, the developer cannot legally build more than 30,000 square feet on the parcel (3.0 x 10,000 ft.). This FAR is the true limiting factor to how much can be constructed on a site, not the building height”

Given the over-cautious and FAR constraints, the developer cannot build any more on the land regardless of the height restriction. The key difference is the mass of what would be constructed. With a three-story limit, the builder would build three stories at 10,000 feet per floor, effectively covering 100% of the land parcel. If the height limit were removed, the builder could build a six-story structure that covered 50% of the land area. This would be preferable since we now have 5,000 feet of open, landscaped space.

The City has already designated Brookfield as the preferred developer for the Sports Arena site. We can assume that they will continue with their efforts to eventually redevelop this massive site. Surely, this will spur additional redevelopment on other properties in the area. So, what are the options? What would you like to see in our community in 10 years, with the assumption that any developer will see to maximize the utility of their land given the development constraints and regulations in-place?

The mantra we keep hearing over and over is our desire for open space and walkable communities with plenty of public-access to the various amenities. With the 30 ft. limitation in-place, the chances of this are slim since the builder will need to maximize the footprint while complying with the FAR regulations. Imagine a 30-foot wall of uninterrupted structures all along Sports Arena Blvd, with an intermittent break where the side streets intersect. You will not be able to see the new sports arena because of the wall’s obstruction. In contrast, imagine a series of taller structures offering the same square footage of space yet with greenbelts and walking/biking paths in between offering view corridors throughout.

The passage of measure-E, will not open the floodgates and allow the developer to construct any more building area than they can under the current in-place regulations for permitted floor area. What it will do is allow for the development of taller buildings, which will then allow for the open space and amenities we all desire.

The pressure to come together for measure-E is heavy as this decision will have a multi-generational impact on Midway and the sports arena area.

If you have any interest in learning more about local market updates reach out to Kyle Clark at kclark@intersectioncre.com

written by
Autumn Valencia

Intersection is proud to announce its new offering, R&M Services

 

An Essential part of Intersection’s real estate platform in providing a vertically integrated operation is the Repair and Maintenance (R&M) Services division. The R&M Services division offers facilities solutions beyond the ordinary. Delivering an array of services to Intersection’s portfolio of properties, in addition to servicing the greater San Diego area. 

The division ensures that tenant satisfaction, asset preservation, safety, and curb appeal are top priorities. Intersection’s R&M technicians collaborate with property managers, brokers, and owners alike to gain a better understanding of the client’s assets. Consequently, this relationship management leads to increased efficiency and reduced risk.

Intersection R&M technicians are exemplary of the company’s core values and always Driven by Integrity. The team maintains the highest level of professionalism and takes pride in the properties they service. 

Offerings range from more specialty services like flooring, lighting, and concrete treatment to turnover repair for vacant units including patching, painting, window treatment install. R&M Services also has the ability to operate for recurring services like gardening, inspection, vandalism repair, and day porter services. 

At Intersection, we look forward to being able to offer more solutions and expand these services to the relationships we are so proud to have built. 

 

For more information regarding repair and maintenance services with Intersection, please contact Elaine Wolgast at 619.314.7200

written by
Emily Bane

San Marcos Square Welcomes Sunnyside Learning Center to the Re-Envisioned Center

Sunnyside Learning Center has signed a 10-year lease to occupy an approximate 3,634 square foot space at San Marcos Square retail center at 172 South Rancho Santa Fe Road in San Marcos for $784,944. Senior Directors, Dan McCarthy and Kyle Clark, along with Associate, Natalie Baylon represented the lessor, Intersection, in the transaction. 

San Marcos Square was acquired by Intersection in 2017, in which the company has made significant renovations and brought various new tenants to the re-imagined center. “We were looking for an operator that would fill a need in the community,” said Baylon. 

Intersection leveraged their affiliation with the San Marcos Chamber of Commerce to engage with the community directly during a business mixer. From there, in coordination with Economic Development Manager, Tess Sangster, the team was referred to Sunnyside Learning Center. 

Sunnyside Learning Center was looking for an opportunity to expand their current in-home operations as a childcare provider for infants and toddlers. As an essential service, the expansion will enable safe education among a larger enrollment. Their new space at San Marcos Square consists of four total retail suites being combined into one larger suite to include several classrooms, an administrative office and an outdoor play area. The outdoor area, which is currently unused parking spaces will be converted into a productive amenity for the preschool, not visible from the street. The space is currently undergoing build-out and is expected to open before the end of 2020.

McCarthy said, “the addition of Sunnyside Learning Center creates a synergistic effect as Intersection drives a new-retail experience at this highly visible asset”.

Emily Bane is the Marketing Manager at Intersection, providing strategic marketing expertise to support business objectives across company divisions. Contact Emily at ebane@intersectioncre.com

written by
Emily Bane

Ideal Location For Tech Company Within Vista Industrial Park

Intersection Senior Director, Henry Zahner represented the seller in the sale of the freestanding industrial building for $1,685,760. The 8,780 square-foot property consists of office and warehouse space, most of which has undergone recent renovations.

The single-story facility was previously headquarters to ICP America, owned and operated by the seller, Puglisi Family Trust. Today, the facility located at 1070 Joshua Way, Vista, CA 92081, is the future home to Techmaster Electronics, a global leader in electronic test equipment calibration services. The buyer, Celtic Blue, LLC (aka Techmaster Electronics), was represented by Dave Steffy of Palomar Commercial.

The property’s location within the Vista Industrial Park of North County is ideal for the buyer who services clients all over Southern California, as well as nationwide. The central location between Orange County and San Diego is reputable for its diverse and strong economic region.

For more information on this deal or if you’d like to discuss Intersection representation further, please reach out to Henry Zahner at 760-889-7943 or hzahner@intersectioncre.com.

Emily Bane is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. Contact Emily at 619-819-8725 or ebane@intersectioncre.com

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