Promontory Business Park Sells Out

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CARLSBAD, CA-The appetite for small, owner-user properties in San Diego County remains strong. The latest example is the selling out of Promontory Business Park.The six-property, 80,280-sf business park experienced its final sale with a deal for a 16,672-sf industrial/R&D building. Xnergy, a commercial HVAC company, acquired the property, which is located at 2721 Loker Ave., from Pacific Starr–Essex Carlsbad LLC.Pasadena-based Pacific Starr, a private real estate investment company, acquired the business park in 2003, for $4 million, buying the park from FDIC. Pacific Star initially planned to market the space for lease. However the firm switched gears “due to increasing owner-user interest,” according to company officials.Pacific Star subdivided the property into individual, for-sale parcels. The total value of Promontory properties sales topped $12.5 million. Buildings at the park range from 9,418 sf to 16,672 sf. For this latest deal, Dave Pinnegar, Rik Floyd and Russ Jabara of Colliers International represented the seller. Mel Coffman of GVA / IPC and Bob Dulich, an independent broker, represented the buyer.”The Promontory has provided owner-users and small investors the value-added benefit of participating in the growing North County real estate market,” says John Pipia of Pacific Starr Group. “Currently, there are a number of owner-user developments under construction in the area that are being marketed at significantly higher asking prices.”According to a recent report by Colliers International, Carlsbad, along with Oceanside, are the two submarkets with the most industrial space under construction in San Diego County. Carlsbad counts 898,540 sf under way, according to the report, with Oceanside coming in second at 641,715 sf. The Colliers research analysts cite “the lack of developable land in most parts of the county is what is driving current and future development to North County.”