ACQUISITION OF 12 BUILDINGS IN SORRENTO VALLEY, CA

by Dan Peoples | Nov 05, 2012

October 5, 2012

NEWS FROM:  Parallel Capital Partners, Inc.

FOR INFORMATION: Matt Root, Parallel Capital Partners, 858-882-9506
   Jim Ingebritsen, Parallel Capital Partners, 858-882-9504
   Dan Peoples, Peoples & Company, 858-552-1456

Parallel Capital Partners Acquires 12 Sorrento Valley Properties for $40.7 Million

– Purchases Include 309,607 Square Feet of Life Science, R&D and Office Space –

San Diego, Calif.  Parallel Capital Partners, Inc. has announced that it has acquired 12 life science, R&D and office buildings in four complexes in Sorrento Valley for $40,725,000.   The acquiring entities were partnerships between Parallel Capital Partners and Angelo, Gordon & Co.  The seller was Collins Development Company, Inc.  The new owner plans an extensive renovation and repositioning program for the portfolio.

The individual transactions are as follows:

• Sorrento Centre, located at 11494 Sorrento Valley Road, was acquired by AGP Sorrento Centre, LP.  The 31,066-square-foot building on 1.8 acres was built in 1978 and renovated in 2011. Now 80% occupied, major tenants include Inovio Biomedical Corporation, Orphagen Pharmaceuticals and Synthetech.
 
• The five-building Sorrento Business Complex was acquired by AGP Sorrento Business Complex, LP.  The buildings, which were constructed between 1973 and 1975 and renovated in 2010, are located at 11535, 11545, 11555, 11575 and 11585 Sorrento Valley Road and comprise a total of 126,329 square feet on 6.3 acres. Currently 85% occupied, major tenants are Rempex Pharmaceuticals, Cosmo Bioscience and Vaxiion Therapeutics.

• Sorrento Square consists of three buildings at 11558, 11578 and 11568/11588 Sorrento Valley Road. Built in 1972 and 1973, the complex has been acquired by AGP Sorrento Square, LP.  Sorrento Square encompasses 80,481 square feet on 3.7 acres. With a current occupancy of 67%, major tenants are Cliawaived, MabVax Therapeutics and Big Ring Venture.

• The Sorrento R&D and Sorrento R&D Addition complex encompasses three buildings at 11750, 11760 and 11772 Sorrento Valley Road. The buildings were constructed in 1971 and 1973 and have been acquired by AGP Sorrento R&D, LP, and AGP Sorrento R&D Addition, LP. Total square footage is 71,731 on 3.7 acres. The blended occupancy across the buildings is 70%  with major tenants including Health Savings Associates, Collins Development Company, Salomon Construction, CW Clark, and the San Diego Chamber Orchestra.

Parallel Capital Partners plans an extensive renovation and repositioning of the assets to transform the collection of underutilized buildings into fully integrated and amenitized complexes.  Improvements will include ready-to-lease spec suites, full upgrades to building facades, fresh landscaping, enhanced signage opportunities, and common area amenities. 

“The 92121 zip code signifies the core of San Diego’s biotechnology and high-tech corridor – and provides tenants a central location with high professional and corporate appeal,” said Matt Root, CEO.  “This acquisition allows us to expand our presence in Sorrento Valley and through our repositioning and repurposing efforts provide a first-rate tenant experience to the broad spectrum of tenants looking to call Sorrento Valley home.”

Eastdil Secured represented both the Collins and Parallel Capital entities in the transactions.

Parallel Capital Partners, Inc. (parallelcapitalpartners.com) is a private, fully-integrated real estate investment and operating company focused on acquiring value-added and core plus opportunities for our own account in the western United States and Hawaii.