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Sorrento Mesa continues to cement its rep as a tech hub. Case in point: Parallel Capital Partners has partnered with Sam Zell's Equity Group Investments to acquire Wateridge Plaza for $72.5M.  CEO Matt Root tells us this is Parallel's first deal with Zell. The JV purchased the three-building, 279k SF campus from Beacon Capital Partners and C-III Realty, with plans to deliver creative high-tech space. The Wateridge project was fully marketed a year ago by Eastdil. A pending vacancy by 50k SF tenant Quintiles reduced occupancy from 90% down to the low 70s and gave many potential buyers pause, Matt says. "That's what provided the opportunity for us to jump in and acquire it for what we think is a great basis going in." (Optimists see the building as half full.)  The new owners now have 75k SF and four floors to fill. Matt calls it "great space" with floor-to-ceiling glass. (It's a better mirror than your iPhone.) Beacon and C-III made $14M in upgrades, and Parallel will expand on that, hiring Gensler and Glanz Signing & Graphics for a renovation including modified exterior colors, new signage, and warming up the courtyard. Matt's anxious to enhance the project's curb appeal, noting Sorrento Mesa's not only a tech and life science corridor, but also an emerging office hub. Cushman & Wakefield's Eric Northbrook and Chris High are handling leasing.  The eight-acre site includes future development potential for an additional 168k SF. Matt says planning will start immediately; he estimates it'll probably be 24 months before they break ground. With Sorrento Mesa's Class-A vacancy pegged at 6%, there's plenty of tenant demand, he says. Parallel's not done there—next week, Matt anticipates closing on the $101M acquisition of Shoreline Square in Long Beach from Guggenheim. This one's for its own account, without partners. But tomorrow, he'll be at the Honda Center in Anaheim, cheering for SDSU against Arizona. He's got the Aztecs getting into the Elite Eight. |
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This Morning at the HiltonBisnow held its first annual San Diego State of the Market this morning, and our panel included Dealy Development's Perry Dealy (snapped at a Bisnow event last year). Before the event, he told us he's working as a development consultant for major mixed-use projects like Manchester Pacific Gateway and the Chula Vista waterfront. There's demand from hotel operators to plant their flag and good market fundamentals. The challenge is getting the developments built. But money's identified for medium-sized projects, and "We're just starting to see some of the financial opportunities come back into the market on the larger projects." If Phase 3 of the Convention Center launches, that'll be another demand generator for hotel rooms, he says. Look for coverage of our event in next week's issue. |
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The Pick of PasadenaUp north in Pasadena, local player Paragon Real Estate Fund has plucked a plum property for $10.8M: the ground-floor retail condo at Retail @ Pasadena Collection, a mixed-use development with 110 luxury units. The condo contains 20k-plus SF of retail space, leased to tenants like Vitamin Shoppe, National University, Sharky's Woodfired Mexican Grill, and T-Mobile. (If the burrito is good, you can head next door and call your friends.) Hanley Investment Urban Retail Advisors' Carlos Lopez, who repped both sides with Lee Csenar, tells us the property is located in the city's trendy South Lake Avenue retail district, which boasts extremely low vacancies; 100% of the tenants have renewed or extended their leases since 2010, he says. |
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The Deal Sheet SALES Fair Oaks Valley LLC bought Old Town Center, a 30k SF mixed-use building (28544 Old Town Front St) in Temecula (above) for nearly $7.7M. The 100% occupied office and retail building is home to diverse tenants including Edge Restaurant, Crush & Brew, La Point Wealth Management, and Living Yoga Center. Colliers' Chuck Wasker and Kagan Commercial Real Estate's Mark Kagan repped the seller. Ashcraft Investment's Jim Ashcraft and Bill Harp repped the buyer. *** Fair Oaks Valley LLC bought 265 Santa Helena in Solana Beach, a 14k SF multitenant office building, from Propco LP for $4.3M as part of a 1031 Exchange. The two-story building sports an atrium design with a water feature and courtyard, and is 100% leased. CBRE's Paul Lafrenz and Melisssa Foster repped the seller. Ashcraft Investment's Jim Ashcraft and Bill Harp repped the buyer. *** Big Cat Investments bought a 7,751 SF free-standing office building, 3168 Lionshead Ave near Carlsbad Raceway in Carlsbad, from McIntyre Smith Holdings for $1.6M-plus. Colliers' Conor Boyle repped the seller. The buyer represented itself. *** Anon leased 1,540 SF of retail space, 4152 30th St in San Diego, for a hair salon. The 38-month lease includes two months' free rent. Pacific Coast Commercial's Martin Alfaro repped the tenant. |
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