In an off-market deal, HP Investors and Realm L.P. have acquired 1450 Frazee, a 145,000-square-foot office building in San Diego. DRA Advisors sold the property for $20.3 million. Rebranded as Axis 1450, the asset is set to undergo a capital improvement program.
The building had been under DRA Advisors’ ownership since 2018, when the company bought it from Menlo Equities for $33 million, according to CommercialEdge information. The company used $22 million, five-year loan from Guggenheim Life and Annuity Co. to acquire the property.
The new Axis 1450
Completed in 1982 at 1450 Frazee Road, Axis 1450 is a seven-story building featuring floorplates that range from 2,000 to 20,000 square feet. The tenant roster includes Jones & Associates Consulting, Axia Real Estate Group, Financial Planning Consultants and Staffmark, CommercialEdge data shows. The new ownership will soon start renovations at the property, as part of a multi-million capital improvement program that will upgrade the building infrastructure and common areas.
Located within San Diego’s Mission Valley submarket, the office building is within 5 miles north of downtown, just off California State Route 163. The property is adjacent to the Friars Mission Center, Mission Valley and Hazard shopping centers, as well as near the Hazard Center light rail stop on the Green Line.
Going forward, JLL Market Lead Tim Olson and Executive Vice President Bess Wakeman will be in charge of leasing at Axis 1450.
As of April, office transaction volume in San Diego reached $510 million, ranking ninth nationwide, behind Manhattan ($2.6 billion), Washington D.C. ($1.4 billion), the Bay Area ($1 billion), Houston ($865 million), Chicago ($759 million), Los Angeles ($638 million), Boston ($543 million) and San Francisco ($514 million), according to the latest CommercialEdge office report. Listing rates in the city averaged $43.36 per square foot in April, up 1.0 percent year-over-year. Moreover, San Diego’s office vacancy rate rose to 22.6 percent, marking a 420-basis-point increase year-over-year.