San Diego Office Complex Trades for $51M

Parallel Capital Partners bought the two-building asset in the Kearny Mesa submarket from Blackstone affiliate EQ Office. The seller had acquired the property as part of a $3.3 billion portfolio deal.
9275 Sky Court. Image courtesy of Parallel Capital Partners

San Diego’s thriving Kearny Mesa submarket has received another boost with Parallel Capital Partners acquiring a two-building, Class A office complex from EQ Office for $50.6 million. HFF’s Nick Psyllos and Michael Leggett represented the seller, while Parallel represented itself in the sale of the property, Sky Park Office Plaza.

EQ Office, formerly Equity Office, is owned by Blackstone real estate funds. The company had picked up the asset at 9275 and 9325 Sky Park Court from GE Capital Partners, as part of a $3.3 billion portfolio deal in 2015, according to Yardi Matrix data. The property sits on a 5.8-acre site and provides more than 203,000 square feet. The three-story building at 9325 Sky Park Court measures 71,857 square feet, while the four-story building at 9275 Sky Park Court spans 131,619 square feet.

Both glass-and-concrete buildings were completed in 1987. The complex is 96 percent leased to tenants including Qualcomm, Liberty Mutual Insurance, Molina Healthcare, The Travelers Indemnity Company and Union Bank, according to a statement by Parallel. The real estate investment firm plans to invest around $1 million in renovations to the property in the immediate future, including façade upgrades and improvements to building finishes.

Kearny Mesa remains hot

In a prepared statement, Matt Root, CEO of Parallel, also cited the office plaza’s location within the outperforming Kearny Mesa submarket and its proximity to Interstates 15, 8, 805 and 5 as reasons for the acquisition.

Investors hunting for Class A office assets in San Diego focused on the Kearny Mesa submarket along with Sorrento Valley and Carlsbad in the second quarter, according to a recent Yardi Matrix report. In April, Washington Capital Management purchased Spectrum Corporate Plaza, a Class A property at 9242 and 9246 Lightwave Ave., on behalf of a client for $39.8 million.