Prime US REIT buys office complex in San Diego, California for $146m

Prime US REIT buys office complex in San Diego, California for $146m

Singapore-listed Prime US REIT has acquired Sorrento Towers, a 296,327 square-foot Class A office complex in the heart of Sorrento Mesa, San Diego, California from real estate investment company Shorenstein Properties for $146 million.

KBS said it serves as the U.S.-based asset manager for the portfolio, which included identifying and sourcing this asset on Prime US REIT’s behalf.

Sorrento Towers is a Class A property that consists of two seven-story office buildings situated atop a multi-level parking structure.

“At 98.2% occupancy, Sorrento Towers is one of the most sought-after properties in San Diego’s premier innovation hub and is within walking distance of over 60,000 square feet of high-quality retail amenities,” says Gio Cordoves, Western regional president for KBS. “Through this transaction, KBS has assisted Prime US REIT in securing another opportunity to add value to this portfolio.”

The Sorrento Mesa submarket where Sorrento Towers is located is home to San Diego’s largest concentration of technology companies, including those in the life science, biotech and med-tech sectors, telecommunications, wireless applications and healthcare.

Its location just east of Torrey Pines, University Town Center and University of California San Diego, and just south of Del Mar Heights is drawing in such global firms as Google, Apple and Qualcomm, which continue to expand their presence in San Diego. The region’s mild climate, desirable lifestyle, highly qualified and educated talent pool, respected universities and research institutions, and lower office rents relative to other coastal California markets is driving the market’s growth in digital technology-focused firms.

Built in 1990, Sorrento Towers is a LEED Gold-certified state-of-the-art life science/office asset conveniently positioned just south and east of the I-5/I-805 interchange and accessible to I-15 and other major local roadways. The property is centrally located in the San Diego region with easy access to surrounding business centers, public transportation, and residential communities.

Shorenstein acquired the property in 2018 and increased occupancy to 98%. Over the last few years, the property underwent significant upgrades including state-of-the-art tenant improvements, updates to the common areas, a fully renovated open-air plaza, an upgraded fitness center, conference spaces, training center and collaborative meeting areas.