PREI Pays Reported $57M for Mission Valley Office Building

The San Diego office market recorded an important transaction on its road to recovery as the Rio San Diego Plaza recently traded hands. The office asset was acquired by Prudential Real Estate Investors from AEW Capital Management, who sold the property on behalf of one of its institutional clients. The property had been acquired by AEW Capital Management back in 2006 from 8954 Rio San Diego LP. The deal was handled by real estate company Jones Lang LaSalle. The JLL team in charge of the deal was made up of Managing Directors Lynn LaChapelle and Bob Prendergast.

In another sign of San Diego’s strengthening office sector, Prudential Real Estate Investors bought Rio San Diego Plaza  in the Mission Valley submarket. The seller, AEW Capital Management, had owned the he 189,490-square-foot asset since 2006 and sold it on behalf of an institutional client.

AEW was represented by Jones Lang LaSalle Inc. Managing Directors Lynn LaChapelle and Bob Prendergast, according to the San Diego Business Journal.  Rio San Diego Plaza commanded a price of $56.8 million, the Business Journal reported.

Located at 8954 Rio San Diego Drive, the six-story building earned LEED Silver certification about a year ago. The property has also earned a TOBY award from Building Owners and Managers Association International, as well as design awards.

Mission Valley is a strong submarket, with median office vacancy at about 10 percent, according to Jones Lang LaSalle. With local unemployment declining, the buyer  identified a strong investment opportunity in a market characterized by thriving  biotechnology and education sectors. Office absorption is also on the rise, exceeding 850,000 square feet by mid-year, Jones Lang LaSalle reported.