Ocean Ridge is an approximately 76,000 SF Class A+ office building located in the coastal Carlsbad submarket of San Diego, California. The property boasts an impressive tenant mix, including Fortune 500 companies Morgan Stanley and Charles Schwab. Located on a corner parcel in the prestigious Carlsbad Ranch, the property is situated atop a prominent bluff overlooking the Carlsbad Flower Fields and Pacific Ocean and features panoramic ocean views, convenient access to the transportation corridor of Interstate 5 and access to 500,000 SF of retail and 50 restaurants within a 1-mile radius.
Built in 2006, the property features distinct architecture and a steel, stone, and glass exterior. It includes amenities like onsite showers and lockers along with two balconies and an outdoor patio with ocean views. The subterranean parking structure is the only underground parking in Carlsbad Ranch and provides the property with an additional revenue stream.
The property has been well maintained during its almost 15-year lifetime under institutional ownership. There does, however, exist an opportunity to improve the tenant experience and to lease the two outstanding vacant suites. More specifically, the business plan includes:
- Updating the building interior including a light lobby renovation, modernization of the common area restrooms and installing new glass entry doors for each tenant suite; and
- Adding amenities including a bike and surfboard enclosure in the parking garage as well as re-programming the outdoor patio / work space which features ocean views.
The property is 86% leased and comprised of 9 suites, 2 of which are currently vacant. The 7 existing tenants feature a 4-year weighted average lease term. At a purchase price of $372 per square foot, the property was acquired at a material discount to estimated $500 per square foot replacement cost.
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