The Shidler Group has purchased a 15-building portfolio of R&D buildings located within three business parks in Sorrento Mesa, 92126. The properties encompass a total of total 438,142 square feet and are approximately 75% occupied. The seller was Mullrock Umbrella, LLC and the sales price was $61.9 million.
Nine of the buildings are in Centerpark Plaza, a business park with two groupings of buildings that include eight single-story R&D buildings and one two-story, campus-style office building. Centerpark Plaza I is located at Flanders Dr. and Mesa Ridge Rd. and contains the office building and four of the R&D buildings. The office building is 45,098 square feet and is currently 60% leased. The square footages of the R&D buildings are 20,220 sf, 23,977 sf, 20,319 sf and 23,211 sf. Centerpark Plaza II is located at Flanders Dr. and Mesa Rim Rd. and the square footage of the buildings is 16,584 sf, 13,537 sf, 23,409 sf and 17,784 sf. Major tenants in Centerpark Plaza are Xerox Corp., EMC and KLA Tencor Corporation.
Three additional buildings comprise Pacific Point Business Park, which is located on Pacific Center Blvd. The buildings have square footages of 54,712 sf, 44,869 sf and 41,340 sf and are 100% occupied. Gamma-Metrics, Tachyon, Inc. and Fujitsu are prominent tenants at Pacific Point.
Sorrento Tech Business Park contains three single-tenant buildings on Barnes Canyon Rd. Square footages of the properties are 30,097 sf, 25,477 sf and 37,866 sf. Two of the buildings are occupied by Information Systems and Lightpointe Communications, with the third building currently vacant.
Matt Root, a Partner in The Shidler Group, said, "San Diego has clearly become one of the technology centers of the nation. We believe growth in local high-tech industries, as well as companies relocating from other cities or setting up subsidiaries here, will create a high level of demand for quality R&D space, and that the values of these buildings will continue to appreciate."
Both sides in the transaction were represented by Jay Borzi, Stephen Silk and Adam Edwards of Secured Capital of Los Angeles; Eric Northbrook of Cushman & Wakefield and Chad Urie of Colliers International were the San Diego market contacts.