Radius Group Completes Largest 2007 Commercial Property Sale On The Central Coast

Santa Barbara, Calfornia - 09/27/07

Radius Group Commercial Real Estate is pleased to announce the sale of the Devereux Campus by The Devereux Foundation to the Regents of the University of California. Paul Gamberdella, Bob Tuler and Brad Frohling of Radius Group Commercial Real Estate along with Tom Dwyer and Michael Slater of CB Richard Ellis represented The Devereux Foundation in the transaction.

Although Devereux asked that the final selling price not be disclosed, Radius Group was permitted to say that the “asking price� was $27.5 million. This transaction represents the largest 2007 commercial property transaction both from the standpoint of property size and sales price on the South Coast.

The property is located at 6900 Devereux Road, sits atop the oceanside bluffs and is surrounded by property owned by the University of California. The 33 acre campus consists of 37 existing buildings totaling 170,000 square feet along with additional master planned entitlements providing the possibility of adding additional square footage. In 1946, the Devereux Foundation purchased 500 acres around the current location from the Campbell Ranch Estate. By 1967 Devereux had sold off most of the land to the University of California except for the 33 acres which make up the current site.

As a part of the purchase agreement, Devereux will lease back from the University of California an approximate 4.3 acre piece of land on the North Knoll of the 33 acre site. This area of the campus contains 5 buildings totaling approximately 39,000 square feet. “Devereux will lease-back this area on a long term basis in order to facilitate the continued care of individuals and for the administration and management of community based programs,� said Paul Gamberdella, sales agent at Radius Group.

“We were hired by The Devereux Foundation to advise them on the appropriate value of the property and to provide and implement a marketing strategy,� said Gamberdella. “The University of California had a pre-existing Right of First Refusal to purchase the property. This meant that a key component to effectively marketing the property was compelling The University of California to step up and negotiate in good faith to purchase the property or step away so that another party could. Our team was able to demonstrate to the University that the price was fair and that there were others willing to purchase the property.�

In terms of what was gained by both parties, “By being proactive rather than reactive, the University was able to close the transaction in a timeframe that worked for them and in doing so acquire a property that is undoubtedly worth more to The University of California than any other prospective purchaser,� said Brad Frohling, sales agent at Radius Group.

“Devereux was able to sell the property to the ideal buyer that was not only willing to meet Devereux’s economic terms but who would also be the best steward of the property into the future,� said Bob Tuler, Radius Group Principal.