LPC West & Innovatus Close on San Diego Office Property
Denver-based real estate private equity firm Ascentris and partner company Harbor Associates recently announced the sale of the office property located at 10920 Via Frontera in the San Diego submarket of Rancho Bernardo. Lynn LaChapelle, Bob Prendergast, Sach Kirpalani and Kurt Luedtke of Jones Lang LaSalle represented the seller.
The buyer in this office exchange was New York City-based portfolio management firm Innovatus Capital Partners. No transaction price was specified in the announcement. Lincoln Property Company branch LPC West will provide property management services, marking its 13th collaboration with Innovatus on investment assets in the U.S.
Known as The Pinnacle Executive Center, the building encompasses roughly 110,000 square feet of class A San Diego office space across five stories. The property features large floor plates of 22,022 square feet; standard and above-standard ceiling heights; and three passenger elevators. On-site amenities include controlled access; a fitness center; a common area patio; electric vehicle charging stations; and approximately 440 above-ground and subterranean parking spaces.
“The Pinnacle is one of the premier multi-tenant office buildings in the Rancho Bernardo submarket, ” said Ascentris Vice President, Jeff Higgins. “The building has excellent access to Interstate 15 and the various suburbs of northern San Diego. Over the past three years, the property benefited from a flight to quality; during that time, Ascentris and Harbor increased rental rates by more than 20%. The recent leasing by FAANG tenants, which served to decrease available space in the Interstate 15 corridor and solidify Rancho Bernardo as an institutional submarket, made year-end 2021 an opportune time to market the property for sale.”
Ascentris and Harbor previously purchased the property in 2018 for $31.2 million, according to CommercialEdge data. The joint venture subsequently embarked on a repositioning program that included interior and exterior cosmetic renovations, as well as several amenity additions. The partnership purchased the property at 84% occupancy and sold it 98% leased. Current tenants include Charles Schwab, the California Department of General Services and Enviso Capital.
“Well-located and class A office assets are highly desirable despite on-going COVID-19 concerns,” said Harbor Principal, Justin Loiacono. “The successful repositioning and lease up of The Pinnacle, along with submarket momentum, made now an ideal time to sell the asset. We’re actively looking to acquire similar high-quality office properties throughout San Diego.”