HP Investors and Realm L.P. have acquired 1450 Frazee Road, — a seven-story, 145,000-s.f. office building in San Diego’s Mission Valley neighborhood — from DRA Capital in an off-market transaction valued at $20.25M. The property will be rebranded as Axis 1450.
Property: Seven-story office building
Price: $20.25M
Seller: DRA Capital
Buyer: HP Investors and Realm L.P.
Following the acquisition, the new owners launched a multi-million-dollar capital improvement project that will upgrade the building’s infrastructure and common areas, building on recent renovations completed by the seller.
“What made the property attractive was the combination of an A+ location with a price point on the purchase that allows ownership to make improvements to the building that will help attract tenants as we see a continuing demand for office space as more employers return to in-office work,” said Sumeet Parekh, managing partner at HP Investors.
JLL’s Senior Managing Director Tim Olson and EVP Bess Wakeman will oversee leasing.
“HP Investors is well-positioned to ensure stability and bring long-term value to the office building and its tenants,” said Olson. “1450 Frazee stands out as a leading destination for businesses seeking premium, easily accessible office space in a highly desirable location.”
The building can accommodate tenants seeking 2,000 to 20,000 s.f. Its location in Mission Valley — home to major employers such as United Technologies, Kaiser, Eaton, United Health Group, Paychex and Verizon — adds to its appeal.
“Despite the significant challenges posed by current market conditions, the commercial office sector still offers unique opportunities that others tend to overlook,” said Parekh. “At our cost-basis, this is an outstanding value-add opportunity to reposition the building and take advantage of the leasing velocity taking place in Mission Valley which has resulted from both the flight to quality by office tenants migrating from downtown San Diego and those returning to office for work. We are well-capitalized and ready to execute on deals that enhance value for our tenants and investors.”
