7310 Miramar
San Diego
The Offering
INVESTMENT SUMMARY
- Rentable Area 128,310
- Percentage Leased 84.2%
- Floors 6
- Tenants 17
- Year Built / Renovated 1998 / 2008
- Parking Ratio 10.0 / 1,000 RSF
- Acres 2.8 (121,968 RSF)
- Zoning CC-3.5 (Commercial Community)
- Major Tenants Global Equity Finance (30.7%); Whova (21.6%)
- WALT 5.4 Years
OFFERING SUMMARY
Cushman & Wakefield’s Capital Markets West Team, as exclusive advisor, is pleased to present the unique opportunity to acquire 7310 Miramar Road (“Property”)—one of San Diego’s most renowned and iconic office buildings in the Central submarket of San Diego, California.
The Property is prominently located on a corner site along Miramar Road / Carroll Canyon Road, a main arterial road connecting San Diego’s freeway system and most affluential residential communities.
Encompassing 128,310 square feet on over 2 acres, the Property is 84% leased to 17 tenants with an attractive weighted average remaining term of 5.4 years. The tenant mix is diversified in industry type and size.
The unique architecture of the building provides a rare naturally lit six floor atrium with common area seating, a gym, and substantial value add potential. An abundance of dining is accessible by foot or by car via the surface parking.
“7310 Miramar Road offers the opportunity to acquire a renowned one-of-a kind office building in the hottest Submarket in San Diego with stabilized occupancy, durable cash flow, and future value add through common area improvements or re-development upside.”
INVESTMENT HIGHLIGHTS
As a highly recognized fixture along San Diego’s main arterial road that connects the 5, 805, and 15 Freeways, 7310 Miramar benefits from full glass-clad architecture and a unique pyramid feature that is iconic and renowned by local commuters and businesses. The Property encompasses 128,310 square feet within six-floors that benefit from external unencumbered views of Miramar Memorial Golf Course and Air Base and internal views into the full height and naturally lit lobby atrium common area.
The Property’s six floor atrium and skylight provides tenants with an expansive common area benefiting from a plethora of natural seating and offering substantial value add potential. Additional on-site features include surface parking and a 2,400 RSF gym located just off the atrium on the first floor, both of which are highly coveted by current and prospective tenants. The Miramar Road Corridor provides the tenant base with numerous lunch options just a short walk or drive away.
7310 Miramar’s notoriety, unique architecture, and on-site/local amenity package has enabled sustained cash flow stability. The Property is currently 84.2% leased to a well-diversified tenant roster in the tech and finance sectors. Additionally, over 30% of the asset is leased long-term for a period of 10 years, mitigating risk and providing significant embedded value. The project’s durable cash flow is evident in the 5.4 Year WALT that it provides, far exceeding market average.
7310 Miramar is the key piece to the greater surrounding mixed-use development, controlling a parking easement for an additional ±600 stalls, and offering the Property a parking ratio of 10,0/1000 RSF. The low-rise surface-parked nature of the combined site offers a ripe opportunity for future and denser higher and better use. 7310 Miramar’s corner location and parking easement makes it a must-have piece.
C&W’s Project Management team estimates that the cost to replace 7310 Miramar to be $750+ PSF. Over the past year, the average PSF pricing of San Diego office transactions have been $319 PSF. The current discount to replacement cost has historically never been larger, eliminating the chances of new development for the foreseeable future. Additionally, approximately 3.7 MSF of the Submarket’s office inventory has been or will be demolished for the development of life sciences.
Situated adjacent to other central San Diego markets such as Sorrento Mesa, Torrey Pines and UTC, Miramar offers easy access to local business centers and residential communities. Many of San Diego’s most affluent neighborhoods are located nearby such as La Jolla, Del Mar, University City, Carmel Valley, Scripps Ranch and Rancho Santa Fe. Other attractive communities within a short distance include Tierrasanta, Poway, Rancho Penasquitos, San Carlos, Serra Mesa and Clairemont Mesa.
Centrally located in the heart of San Diego County, Miramar is a thriving submarket characterized by attractive office buildings, light industrial districts, and a generous collection of retailers, restaurants, and outdoor recreation. Home to the Marine Corps Air Station and numerous military families and employees, the market is also recognized for its easily accessible location and adjacency to the second most sought after life sciences neighborhoods in the Nation. Approximately 3.7 MSF of the Submarket’s office inventory has been or will be demolished for the development of life sciences, pushing tenants to Miramar and shrinking the supply of available office opportunities in the area.
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