BH Properties Acquires Premier 405,250 SF Mixed-Use Hazard Center in San Diego’s Mission Valley

San Diego, CA – AUGUST 27, 2024 – BH Properties (“BH”), a vertically integrated, value-add real estate investment company, continues its streak of acquisitions with the purchase of Hazard Center, a 405,250-square-foot mixed-use campus in San Diego’s Mission Valley. Terms of the transaction were not disclosed.

Situated on 14.5 acres, Hazard Center currently features a 15-story, 270,000-square-foot, Class A office tower and more than 135,000 square feet of retail space. Hazard Center follows BH’s 2024 purchase of downtown Seattle’s Pacific Place Shopping Mall and Anchorage Square in San Francisco.

Originally developed in the late 1980s, Hazard Center’s retail component was completed in 1989, and the office tower followed in 1990. The office tower is currently more than 77% occupied with long tenured tenants. Tenants benefit from Hazard Center’s expansive retail offerings, with major retails brands including Barnes & Noble, Orange Theory Fitness, BJ’s Brewhouse, Wood Ranch BBQ & Grill, Which Wich Superior Sandwiches, and FedEx Office, among others.

Global real estate investment bank Eastdil Secured’s Adam Edwards, Justin Shepherd, Michael Kathrein and Bailey Bland served as the exclusive advisor to the seller and marketed the property. This transaction represents a significant milestone for the relationship between BH Properties and Eastdil Secured, with the firms surpassing $580 million in total transaction activity – of which roughly $300 million transacted in the last 18 months alone.

“Our strategy coming into 2024 was to continue our growth and expansion through opportunistic investing in value-add projects. We laid the groundwork in 2022 and 2023 with the opening of regional offices in both Seattle and San Francisco, where we have now grown our portfolio,” said Jim Brooks, President of BH Properties. “We have had San Diego County on our list of preferred markets for quite some time. Hazard Center, with its terrific location in central San Diego along with its roster of strong retail brands , checks all the boxes and expands our footprint in California. Our track record with Eastdil Secured has contributed greatly to our growth.”

“This transaction underscores the strong demand for high-quality, well-located, mixed-use assets in the resilient San Diego market,” said D. Michael Van Konynenburg, President of Eastdil Secured. “We are pleased to have advised the seller in this transaction. Through strong stewardship and property management – including welcoming a number of new blue-chip tenants and retail offerings – Hazard Center presents a remarkable market opportunity. Jim and the BH team are well positioned to build on this momentum and expand offerings for tenants and the local community alike. We are proud to have reached this transaction milestone with BH.”

BH Properties has been capitalizing on market conditions, having acquired eight properties across all asset classes in the first half of 2024 alone. With the Hazard Center acquisition, the Company owns and operates more than 11 million square feet across 16 states.

About BH Properties

Founded 31 years ago, privately held BH Properties
is a vertically integrated real estate investment company focusing on the acquisition and management of a geographically and product diverse portfolio of assets. The Los Angeles-based company, with six regional offices in San Francisco, Phoenix, Dallas, Houston, Seattle and Riverside, CA, continues to focus on value-add transactions, distressed debt, gap financing, and ground leases. For more information, please visit https://www.bhproperties.com.

About Eastdil Secured

As the most relevant and trusted advisor in the commercial real estate capital markets, Eastdil Secured creates value for clients through creative, actionable ideas and flawless execution. With an unrivaled combination of capital markets expertise and in-depth understanding of real estate fundamentals, Eastdil Secured delivers best-in-class advice on mergers and acquisitions, sales, joint ventures, debt placement, structured credit and loan sales to investors around the world. Headquartered in New York, Eastdil Secured has a broad global footprint to support clients with offices across the United States in Atlanta, Boston, Charlotte, Chicago, Dallas, Los Angeles, Miami, Orange County, San Francisco, Seattle, Silicon Valley and Washington, D.C., and internationally in Dubai, Dublin, Frankfurt, London, Milan, Paris, Hong Kong and Tokyo. For more information on Eastdil Secured, the global real estate investment bank, please visit https://www.eastdilsecured.com.