The 31,000 square foot office building in Sorrento Mesa becomes their first asset in the Intersection Diversified Value Fund (Fund II)
SAN DIEGO, May 8, 2019 (Newswire.com) - San Diego-based commercial real estate firm Intersection has acquired a class-B office building in Sorrento Mesa for $7,575,000, making this their first asset in their second Fund, the Intersection Diversified Value Fund.
The 30,996 square foot class-B office building is located at 5665/5677 Oberlin Drive in the Sorrento Mesa submarket of San Diego. Oberlin Court is a two-building office portfolio on a 1.37-acre parcel. The office project benefits from recent common area renovations, easy freeway access to I-805 and close proximity to retail and restaurant amenities. The property is an office campus in a highly desirable submarket with strong historical net absorption and low vacancy.
Intersection sourced the property through Ben Tashakorian, Senior Managing Director of Marcus and Millichap, as well as Brad Peters and Trent Carvolth. Intersection plans to execute a value-add campaign, including exterior paint, window replacement, new roof and lobby/corridor renovations. Along with the renovations, rents will be moved to market.
The Intersection Diversified Value Fund was the buyer and Fenway Properties the seller.
“The size and value-add strategy for this property is a perfect fit for our new Fund strategy,” said Dan Leon, Director of Acquisitions at Intersection. “This project has very good historical occupancy and will be able to deliver day one yield to our investors. We also feel very good about the market. This property is located within walking distance of retail, which is rare for a suburban office in San Diego.”
Intersection launched its second fund product, the Intersection Diversified Value Fund (Fund II), as of April 1, 2019. Fund II’s strategy is to acquire a diverse portfolio of well-located commercial real estate in major metropolitan areas throughout California. “With a potential end-of-market cycle in the offing, Fund II will target assets with good credit, diversified tenant rosters and in-place cash flow,” said Managing Director Rocco Cortese.
For more information on Intersection and to view their recent transactions, visit www.intersectioncre.com.
Source: Intersection
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