Regions West | San Diego
Oct 12, 2007
By: Gail Kalinoski, Contributing Editor
Grading work has begun on the first three buildings of what will eventually be a $1.2 billion, 11-building, 3.2 million-square-foot, Class A office campus called Summit Rancho Bernardo, to be located in San Diego.
Jay Paul Co., the privately-held, San Francisco-based developer, will hold an official groundbreaking at the 105-acre site off Interstate-15 on Oct. 25. The first phase, which should be completed by mid-2009, will feature at least three buildings, Brent Wright, a broker and senior vice president with CB Richard Ellis Inc. in San Diego, told CPN today. Wright and his colleague, Chris Pascale, also a senior vice president, are the leasing agents for Summit Rancho Bernardo.
A 185,000-square-foot, five-story office building and a 222,000-square-foot, six-story office building will be constructed first along with a 40,000 square-foot “amenity building,” Wright said. One of two amenity buildings planned for the project, it will have a full-service fitness facility, outdoor swimming pool, spa services and a cafeteria. The developer is using design and construction techniques that should enable it to get the project LEED silver certification.
Wright said he and Pascale are in negotiations with a large financial services company that is interested in leasing about 600,000 square feet. If that deal comes through, Wright said Jay Paul would likely construct a third mid-rise office building in the first phase.
“We’ve got some very good tenants in the immediate area who are going to be prime prospects for us,” Wright added.
“The big question for this project and for San Diego in general with all this new development is are we going to be able to attract companies outside the area,” Wright noted. “Jay Paul certainly feels that when you build the right kind of project it becomes more of a regional attraction versus a local attraction. He feels there is nothing like this in San Diego.”
The developer has built several high-profile projects in northern California, including one similar to the plans for Summit Rancho Bernardo. Pacific Shores Center in Redwood City, Calif., is a $500 million, 1.7 million square-foot, 106-acre waterfront office complex.
“This project is unique for San Diego,” Matt Lituchy, a Jay Paul Co. senior vice president, said in a release. “Professional campuses of this magnitude have helped revitalize the Silicon Valley office market in Northern California. Summit Rancho Bernardo’s sustainable design, features, amenities and aesthetic values will deliver unparalleled office space to the San Diego marketplace, attracting existing and new companies to the area.”
The site along West Bernardo Drive is actually two parcels that Jay Paul acquired for about $145 million to create the 105-acre development site. The company purchased a 75-acre parcel with several old industrial buildings on it from one seller as well as a 30-acre site from Sony Electronics that housed a former television picture tube manufacturing plant. Sony is building its own 12-story, 475,000-square-foot headquarters across the road from the Summit Rancho Bernardo property.
“It adds validity to what Jay Paul envisions for this property,” Wright said of the Sony development.
Wright said the Rancho Bernardo submarket off I-15 is growing thanks to a new east-west freeway, State Route 56. Other nearby office developments under construction include Kilroy Sabre Springs, featuring a Class A, 140,915-squaref-foot office building; and Bernardo Terrace Corporate Center, a 110,000-square-foot building planned by Granum Partners.
The Summit Rancho Bernardo could take up to 10 years to build out, said Wright.
“It is at least a three- or four-phase project,” he said. “The important thing is landing that first tenant. Once you land that first tenant, everything falls into place.”
Wright said the office leasing market is a bit sluggish right now, but expects it to pick up as the credit markets stabilize.
“Activity has picked up in the second half of the year. It’s a lot more encouraging,” he said. “There are a lot of deals getting done and there are a lot of leases in the pipeline getting done for the first part of next year.”
Wright said Jay Paul is “looking at the long-term potential” of the market.
He said the developer is currently securing construction financing. Wright said Jay Paul’s track record and the company’s willingness to make substantial equity investments in its developments should enable the firm to get the financing it needs even during the current credit crunch.
By: Gail Kalinoski, Contributing Editor
Grading work has begun on the first three buildings of what will eventually be a $1.2 billion, 11-building, 3.2 million-square-foot, Class A office campus called Summit Rancho Bernardo, to be located in San Diego. Jay Paul Co., the privately-held, San Francisco-based developer, will hold an official groundbreaking at the 105-acre site off Interstate-15 on Oct. 25. The first phase, which should be completed by mid-2009, will feature at least three buildings, Brent Wright, a broker and senior vice president with CB Richard Ellis Inc. in San Diego, told CPN today. Wright and his colleague, Chris Pascale, also a senior vice president, are the leasing agents for Summit Rancho Bernardo.
A 185,000-square-foot, five-story office building and a 222,000-square-foot, six-story office building will be constructed first along with a 40,000 square-foot “amenity building,” Wright said. One of two amenity buildings planned for the project, it will have a full-service fitness facility, outdoor swimming pool, spa services and a cafeteria. The developer is using design and construction techniques that should enable it to get the project LEED silver certification.
Wright said he and Pascale are in negotiations with a large financial services company that is interested in leasing about 600,000 square feet. If that deal comes through, Wright said Jay Paul would likely construct a third mid-rise office building in the first phase.
“We’ve got some very good tenants in the immediate area who are going to be prime prospects for us,” Wright added.
“The big question for this project and for San Diego in general with all this new development is are we going to be able to attract companies outside the area,” Wright noted. “Jay Paul certainly feels that when you build the right kind of project it becomes more of a regional attraction versus a local attraction. He feels there is nothing like this in San Diego.”
The developer has built several high-profile projects in northern California, including one similar to the plans for Summit Rancho Bernardo. Pacific Shores Center in Redwood City, Calif., is a $500 million, 1.7 million square-foot, 106-acre waterfront office complex.
“This project is unique for San Diego,” Matt Lituchy, a Jay Paul Co. senior vice president, said in a release. “Professional campuses of this magnitude have helped revitalize the Silicon Valley office market in Northern California. Summit Rancho Bernardo’s sustainable design, features, amenities and aesthetic values will deliver unparalleled office space to the San Diego marketplace, attracting existing and new companies to the area.”
The site along West Bernardo Drive is actually two parcels that Jay Paul acquired for about $145 million to create the 105-acre development site. The company purchased a 75-acre parcel with several old industrial buildings on it from one seller as well as a 30-acre site from Sony Electronics that housed a former television picture tube manufacturing plant. Sony is building its own 12-story, 475,000-square-foot headquarters across the road from the Summit Rancho Bernardo property.
“It adds validity to what Jay Paul envisions for this property,” Wright said of the Sony development.
Wright said the Rancho Bernardo submarket off I-15 is growing thanks to a new east-west freeway, State Route 56. Other nearby office developments under construction include Kilroy Sabre Springs, featuring a Class A, 140,915-squaref-foot office building; and Bernardo Terrace Corporate Center, a 110,000-square-foot building planned by Granum Partners.
The Summit Rancho Bernardo could take up to 10 years to build out, said Wright.
“It is at least a three- or four-phase project,” he said. “The important thing is landing that first tenant. Once you land that first tenant, everything falls into place.”
Wright said the office leasing market is a bit sluggish right now, but expects it to pick up as the credit markets stabilize.
“Activity has picked up in the second half of the year. It’s a lot more encouraging,” he said. “There are a lot of deals getting done and there are a lot of leases in the pipeline getting done for the first part of next year.”
Wright said Jay Paul is “looking at the long-term potential” of the market.
He said the developer is currently securing construction financing. Wright said Jay Paul’s track record and the company’s willingness to make substantial equity investments in its developments should enable the firm to get the financing it needs even during the current credit crunch.
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