Baltimore, MD – Alex. Brown Realty (ABR) and CIP Real Estate (CIP) announce the acquisition of the Mercury Tech Center, an industrial/flex portfolio in Kearny Mesa, California. ABR Chesapeake Fund IV, a value-add real estate fund sponsored by ABR, invested $3.6 million in the newly formed venture. The acquisition will be financed via a loan from Sabal Financial, arranged by HFF.
Currently known as the Mercury Court Complex, the portfolio includes six buildings totaling 78,488 sf with excellent access to major thoroughfares throughout the region. The joint venture will rebrand the portfolio as the Mercury Tech Center and reposition it from single-tenant office to industrial/flex use. To complete the repositioning, the joint venture plans to invest approximately $2.3 million to enhance the exterior appearance, reconfigure the interior space, and prepare vacant units for leasing.
“Kearny Mesa is one of the most desirable submarkets in San Diego,” said Eric Smyth, principal at CIP. “Our repositioning will target Kearny Mesa’s core industrial/flex tenant base and allow us to take advantage of the supply/demand factors. Vacancy in the market is currently very low and there is a limited supply of industrial/flex product.”
Since 1998, ABR has successfully partnered with CIP on 14 real estate investments throughout the country. “We value our relationship with CIP and look forward to working with them once again,” commented Tom Burton, ABR’s chief investment officer. “Once our repositioning efforts are complete, we anticipate strong demand for this asset.”
Alex. Brown Realty is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
CIP Real Estate is a full-service real estate investment and management company focused on acquiring, developing, repositioning and managing office, business and industrial parks. Founded in 1995, CIP owns and manages more than 5 million square feet of real estate throughout California, Nevada and North Carolina. www.ciprealestate.com