City Office REIT has closed the sale of its holdings in the Sorrento Mesa submarket of San Diego for $576 million.
City Office said the net sale proceeds, after estimated closing and transaction costs, are approximately $548 million.
“We are pleased to announce the closing of our Sorrento Mesa life science portfolio, which locked in a gain on sale of over $425 million,” said James Farrar, the company’s Chief Executive Officer.
“We are positioned to redeploy these funds into premier office properties across some of the best markets in the country. We are currently advancing three separate acquisitions in Dallas, Phoenix and Raleigh with an aggregate gross purchase price of approximately $613.5 million. Should we be successful in closing these transactions, they will enhance our portfolio, significantly increase our earnings per share and generate predictable, long-term cash flow for our investors.”