Harbor Associates LLC and Ascentris have partnered to acquire The Pinnacle, a 110,110-square-foot, five-story, class-A office building located in the north San Diego submarket of Rancho Bernardo. Real Capital Analytics reports that the property sold n 2007 for $31.6 million, and CoStar reports that the confirmed price for the recent sale is $31.2 million, while JLL reports that the seller is The Muller Company.
The Pinnacle represents Harbor’s third office acquisition in San Diego, following the acquisition of The Bungalows at Del Mar in May. Harbor and Ascentris will execute a capital-improvement plan on the property, including creating new outdoor covered seating and collaborative workspace with canyon views, modernizing the bike-storage and locker-room area, and refreshing the ground-floor lobby.
“Pinnacle represents our 13th value-add office acquisition in the last three years in Southern California and third in the San Diego market,” says Justin Loiacono, principal for Harbor. “We have a robust pipeline of activity behind this transaction and look forward to further building out our Southern California portfolio.”
Ascentris managing director Bobby Ghiselli adds, “Ascentris is currently targeting high-quality office buildings in the primary suburban submarkets across the United States.” He notes that The Pinnacle represents the company’s fifth office acquisition in the past six months.
Lynn LaChapelle and Bob Prendergast with JLL represented the seller. Jay Alexander and Tim Olson with JLL will continue to handle leasing for new ownership, while Davis Partners will provide property-management services.
According to Harbor, Rancho Bernardo, located 25 miles north of Downtown San Diego, is currently experiencing significant tenant demand due in large part to its access, affordability and concentration of technology, engineering, and defense companies located in the submarket. Completed in 2007 and currently 93 percent leased, The Pinnacle is the submarket’s newest office building and is the only property able to offer tenants subterranean parking.