A four-building, approximately 190,154-square-foot office portfolio in Sorrento Mesa has been sold for $41.15 million, cash.
The transaction also included two vacant lots totaling 2.43 acres.
The buyer was G&I VII Sorrento LP, a partnership of DRA Advisors LLC and San Diego-based Cypress Office Properties LLC, c/o DRA, 220 E. 42nd St., 17th Floor, New York, N.Y. 10017.
The seller of the properties (assessor's parcels 341-362-08, 09, 30 and 31, 341-391-24 and 341-392-26) was The Realty Associates Fund VII L.P. and The Realty Associates Fund VIII L.P., c/o TA Associates Realty.
Rick Reeder and Brad Tecca, of Cassidy Turley's San Diego office, represented the sellers and buyer.
The fully leased portfolio consists of:
- 5910 Pacific Center, a three-story, 50,882-square-foot building on 2.47 acres. In early 2012 Nikkiso America Inc. leased 7,916 square feet for 39 months at $502,270. In early 2007, the property was sold for $9.56 million.
- Pacific Heights Plaza, a two-story, 51,261-square-foot building on 2.82 acres at 9985 Pacific Heights Boulevard. In early 2006, the building was sold for $14.5 million. At that time, the building was 100 percent leased to three tenants: Raytheon Corp. (in summer 2005, Raytheon leased 25,448 square feet for 60 months at $2.8 million), State Street Bank and Proceed Software.
In late 2004, the building and the vacant lot were sold for $7.8 million.
The building was originally developed in 1989, as the corporate headquarters for the San Diego County Credit Union.
- Sorrento Heights, a two-building project totaling 88,011 square feet on 5.2 acres at 10020 and 9980 Huennekens Street.
Formerly known as Sorrento II, the two-building, 88,215-square-foot research and development campus as well as vacant lot, on which an 18,000 to 20,000-square-foot office building could be developed, were sold for $18.3 million in late 2005.
The properties are occupied by tenants across a diverse range of industries, including defense, technology, retail and marketing.
Major tenants include Harte-Hanks Intelligence Inc., Solera Wireless and Tearlab Corp. in Sorrento Heights; Charlotte Russe Inc., in Pacific Center; and Raytheon and DPR Construction in Pacific Heights Plaza.
The new ownership plans to upgrade the common areas of each building within the portfolio.
“The portfolio is ideally positioned to take advantage of current market conditions,” Tecca said. “Strong employment growth in Sorrento Mesa is resulting in huge tenant demand, shrinking available leasing options and setting the stage for near-term rent spikes.”