Jay Alexander, Lynn LaChapelle, Tim Olson, Bob Prendergast, Chad Urie JLL San Diego Tech Center 9685-9725 Scranton Road, Sorrento Mesa 655,643-square-foot building and an adjacent 38 acres Total consideration: $256.5 million
About the property:
Involved in the transaction was the 9-building, 655,643-square-foot San Diego Tech Center on a total of 38 acres in Sorrento Mesa for $256.5 million. The land is entitled to an additional 1.2 million square feet of office/industrial development, 350,000 square feet of which is fully entitled and ready to build. According to Lynn LaChapelle, managing director and capital markets specialist with JLL, the property was originally acquired by the seller, Beacon Capital Partners, as part of an overall portfolio.
“They spent a lot of money getting the property ready (for sale), getting the buildings painted, relandscaping and validating the entitlement for the property,” LaChapelle said.
Closing the deal:
The $256.5 million sale was a joint venture of Eastdil Secured and JLL on behalf of the buyer, Houston-based Lionstone Investments, and the seller, Beacon Capital Partners. JLL had represented the seller as the leasing agents on the project. Beacon Capital Partners paid $152.5 million for the property in April 2012.
“There were (some) hurdles,” LaChapelle said. “The first one was how many investors were out there that were willing to invest over $200 million in San Diego, and then the second hurdle was how many investors out there had development expertise. I would characterize (the search process) as more of a tier approach.”
“New ownership is planning on taking it to another level and make this really one of the premier office and R&D campuses in Southern California,” said Jay Alexander of JLL, who with colleagues Chad Urie and Tim Olson will continue to handle leasing for the property.