Jones Lang LaSalle Income Property Trust, Inc. has entered into an agreement to sell Canyon Plaza, a two building, 199,500 square foot office campus at 9808 & 9868 Scranton Road in San Diego, CA, for approximately $34 million, including the assumption of the existing mortgage note payable.
The transaction is expected to close during the fourth quarter of 2013, subject to normal due diligence and approval of the lender on the assumption of the mortgage.
The sale results in an approximate $9 million impairment charge to Jones Lang LaSalle Income Property Trust, Inc., which paid $55.25 million, or about $277 per square foot for the asset in 2007, according to costar.com. The website reported in February of this year that a $28.96 million loan on the property was current.
On January 18, 2013, the Jones Lang LaSalle Income Property Trust subsidiary that owns the asset declared Conexant Systems, Inc., which leased the entire property, in default under its lease for failure to make scheduled lease payments. The lease for Conexant, a fabless semiconductor company, was set to expire in June 2017.
According to Trepp, Conexant had subleased space to two major subtenants: Carefusion, which occupies 95,000 square feet, and AMCC, which occupies 20,000 square feet.