Intersection Diversified Value Fund sold Carlsbad office property, La Place to a local investor
Located at 5900-5950 La Place Court, Carlsbad, CA 92008, this two-building multi-tenant class ‘A’ office campus consists of 81,965 SF within the Carlsbad Research Center.
Brokers Henry Zahner, Steven Jacobson, and Steve Gildred of Intersection, quietly marketed the property for sale in the first quarter of 2022 as an unpriced off-market life science conversion opportunity. After multiple competing offers were received, the buyer Chesnut Properties (Diego I Investment Company, LLC) was selected based on their strong local reputation and future plans for the campus. Strong acquisition interest from a variety of buyers was based on the desire to invest in the future of the Carlsbad market.
La Place was originally acquired by Intersection Diversified Value Fund as a Class ‘A’ stabilized office campus in February 2020. During the holding period, conditions for the office, R&D, and industrial markets across the globe changed largely due to the COVID-19 pandemic. This created a decrease in demand for general office space and an increase in demand for R&D/industrial space. The La Place Court campus represents a versatile product type that continues to be attractive and functional for a variety of uses, including life science.
“There is currently a shortage of life science space in the Carlsbad market where demand and conversion of existing product is anticipated to continue”, says Henry Zahner, Senior Director with Intersection.
Senior Associate Steve Jacobson explains that the Carlsbad submarket and the area immediately surrounding the property are slated to be a premier life science hub. Surrounding properties have either sold for the purpose of life science conversion, are being marketed, or will provide supporting general office space for technology-oriented companies.
“We created a win for both the buyer and seller in this transaction”, says Steve Jacobson
The sale of La Place Court Campus represents the largest transaction for the Intersection Diversified Value Fund, led by Managing Directors Rocco Cortese and Mark Hoekstra.
“The decision to sell the property was tied to our strategy for this project and momentum in the market” shared Rocco Cortese “We have a similar project in Sorrento Mesa that we are also considering for a life science conversion”.
To learn more about this deal please reach out to Rocco Cortese at [email protected] or Henry Zahner at [email protected]
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 [email protected]