Bridgeway Real Estate Partners and LBX Investments Acquire Plaza Del Mar in Del Mar Heights for $43 Million

Bridgeway Real Estate Partners, in partnership with LBX Investments, announced today that it has acquired Plaza Del Mar, a premier 120,000-square-foot office campus located in the Del Mar Heights submarket of San Diego for $43 million ($352 square foot).

Scott Peterson, Mark McGovern, Colby Matzke and Michael Kolcum of CBRE's Debt and Structured Finance practice in San Diego secured the acquisition financing on behalf of the new owners. CBRE's Mike Hoeck, Chris Pascale and Ellycia Walker will lease the property.

Plaza Del Mar is located at 12520 and 12526 High Bluff Drive. It sits within the heart of Del Mar Heights, one of San Diego’s most dynamic office markets, surrounded by a significant concentration of human capital, innovative companies, and business leaders.

According to CBRE research, properties along High Bluff Drive in Del Mar Heights have seen significant rent increases over the last 5 years, benefiting from the flight-to-quality trend as top-tier companies move into the area. Today, new leases at the north end of the street are consistently near or have crossed the $6.00 per square foot per month threshold. Leasing activity is strong, with a large pool of companies actively seeking space in the market, of which over half are new to the submarket.

"Del Mar Heights continues to stand out as the most vibrant office submarket in San Diego, with strong leasing activity and rent performance that reflects its appeal," said Ellycia Walker, CBRE's First Vice President. "Plaza Del Mar is poised to perform well as it delivers that rare balance of premium space with the coastal lifestyle many tenants gravitate towards."

Bridgeway plans to reintroduce the property to the market with an enhanced campus environment, including upgrades to the common-area courtyards that better reflect the coastal Del Mar lifestyle while supporting the professional tenants who work at the property.

"We have long believed in the strength of the Del Mar Heights submarket," said Spike Whitney, Managing Partner of Bridgeway Real Estate Partners. "Plaza Del Mar represents a compelling opportunity to further enhance an already well-located asset in one of the region's most desirable business environments. We are thrilled to partner with LBX to execute on a thoughtful and value-driven business plan."

Bridgeway and LBX's principals have extensive experience investing in and operating office and retail properties in San Diego, including prior ownership interests in trophy office assets and current ownership of retail in the region.

"We are grateful to partner with LBX Investments on this acquisition," said Adam Lurie, Managing Partner of Bridgeway Real Estate Partners. "Their collaboration and partnership were instrumental throughout the process, and we look forward to building on that momentum as we execute our business plan."

Rick Reeder of Newmark represented the seller in the transaction.