Hines Signs 15-Year Lease at La Jolla Commons Campus
- Jan 22, 2012
The San Diego office of international real estate firm Hines has recapitalized its 12.3-acre premier mixed-use La Jolla Commons campus. Hines also executed a 15-year lease for a new 415,000 square foot office building which will be built on the campus located in San Diego’s University Towne Centre area. The office building will be constructed for LPL Financial, the largest independent broker-dealer in the U.S.
In a joint venture with TIAA-CREF, Hines previously developed the 13-story, 300,000-square-foot LEED Gold certified La Jolla Commons tower one. The venture has now sold the campus to a new joint venture comprised of Hines and institutional investors advised by J.P. Morgan Asset Management to finalize the second and third phases of the campus.
Managing Director at J.P. Morgan Asset Management, Robert Curran, said Hines is the ideal partner for their investors to enter the San Diego market and the fact that the campus is best-in-class means that it is expected to provide a high-quality income stream.
Ground breaking for the new building is scheduled for mid-2012, and opening day will be in 2014. LPL Financial will consolidate employees from seven locations in the La Jolla Commons building. The 15-year lease is one of the largest in San Diego’s history.
LPL Financial was represented by Matthew Feeney, Russ Sande and Glenn Friedrich of CresaPartners in the lease negotiations. Hines also recently leased approximately 57,000 square feet in the existing La Jolla Commons office tower to Cushman & Wakefield of San Diego, Inc; Marks, Finch, Thornton & Baird LLP; Tang Advisors LLC; and Arrk Product Development Group USA, Inc. The campus boasts an occupancy rate of over 90 percent.
Photo Courtesy of: Hines.com