February 27, 2018
Pacific Gateway Towers, a 68,700 SF, two-building Class-A office and medical property in Oceanside has sold for $14.9M. Charlie Jadallah, a private investor, acquired the property from IPF Tri City (Fenway Properties) at a cap rate of 7.37%. Mark Avilla, Rick Reeder and Brad Tecca of Cushman & Wakefield’s San Diego office represented the seller. The buyer was represented by Marcus & Millichap’s Nick Totah.
Pacific Gateway Towers consists of two four-story multi-tenant buildings on 5.16 acres at 3142 and 3156 Vista Way in San Diego’s North County. IPF Tri City purchased the project in 2014, re-positioning it in 2015 and 2016, subsequently leasing up to approximately 95.5% at the time of Jadallah’s acquisition.
“Just a few years ago this project was very appealing as an investment given its desirable location, but it was dated with its original 1980s-style design and deferred maintenance,” Cushman & Wakefield Senior Director Mark Avilla said in a statement. “As such, the project was competing with lesser-classed buildings due to the condition of the project, so in 2014 the new ownership undertook a major renovation of the project, which included interior and exterior upgrades to the common areas and renovation of suites to shell condition or as spec suites.”
Pacific Gateway Towers is near Highway 78 and Interstate 5, residential communities and restaurants, retailers, entertainment, hotels and resorts.