Premier Realty Nabs San Diego Office

Fenway Properties bagged $16.3 million for Wateridge Pavilion. Premier Realty Holdings Inc. plans to occupy space at the 62,427-square-foot purchased asset.

Wateridge Pavilion, San Diego
Wateridge Pavilion, San Diego

Premier Realty Holdings Inc. acquired Wateridge Pavilion, a 62,427-square-foot office building in the Sorrento Mesa submarket of San Diego, for $16.3 million. The buyer plans to occupy space at the property. Fenway Properties sold the three-story asset, which was 97 percent leased at the time of the transaction.

Fenway Properties bought the asset from Western States Investment in December 2012 for $9.2 million, according to Yardi Matrix. Located at 10525 Vista Sorrento Parkway, the Class B property was built in 1987 and underwent a cosmetic renovation in 2013. Capital improvements included restroom and shower renovations, resurfaced exterior, hardscape, water feature upgrades and landscaping enhancements. The building is just off Interstate 805 and has easy access to Interstate 5.

Investor appetite

“Wateridge Pavilion generated significant interest from a wide variety of buyers due to its location, historically high occupancy and the quality of Fenway’s recent capital improvements,” said CBRE’s Louay Alsadek in prepared remarks. Alsadek and Hunter Rowe of CBRE and Brett Ward, Michael Cassolato and Michael Mahoney of Cushman & Wakefield handled the transaction on behalf of the seller and buyer.

The Sorrento Valley submarket had a total vacancy rate of 12.4 percent, according to a Yardi Matrix office report soon to be released. While industry veterans maintain an upbeat outlook regarding office investments nation-wide for the second half of the year, signs for the rest of the year are not all promising.

Image courtesy of CBRE