Photo courtesy of Compass Capital Investments
Compass Capital Investments has entered the commercial real estate market with the acquisition of RB Medical Plaza, a 75,598-square-foot medical and office property in San Diego for $18.25 million.
The new investment firm is led by Fresno-area commercial real estate broker Brett Visintainer, the founder of the Visintainer Group that recently passed $1 billion in sales volume.
The acquisition officially marks the start of Compass Capital Investments as a separate investment platform focused on value-add commercial real estate opportunities across the country.
“This platform allows us to take a more proactive role on the investment side,” Visintainer said in a news release. “We’re not just advising on deals — we’re structuring the deals, raising the capital, and executing a defined business plan to create value.”
The property was initially appraised at $43.7 million after closing and recording the office condominium map, according to the company.
Compass Capital plans to convert the two-building property into 39 medical and office condominium units and complete a phased sellout over a four-year period.
The business plan also includes about $1.5 million in renovations, including upgrades to the parking lot, HVAC systems, roof, hallways, elevators, signage and ADA improvements.
They are in escrow on eight units at prices over $600 per square foot.
The offering generated strong demand from investors, according to officials. Compass Capital targeted a $6.95 million equity raise with a minimum investment of $250,000 before increasing the raise to $7.75 million after restructuring its interest reserve. The offering was fully subscribed in less than two weeks.
Compass Capital Investments said it will focus on acquiring and repositioning retail, office and multifamily properties where strategic asset management can create additional value.