The Elements in San Diego’s Sorrento Mesa neighborhood. | Courtesy Parallel Capital Partners

Healthcare Firm Signs $110M Office Lease Renewal

Carrie Rossenfeld Healthcare & Education

Parallel Capital Partners, a San Diego-based real estate investment firm, has renewed its nearly 200,000-square-foot lease with American Specialty Health Inc. at The Elements, a three-building, five-story, class-A office complex located at 10201 Wateridge Circle and 10221/10241 Wateridge Circle in San Diego’s Sorrento Mesa neighborhood, for more than ten years. The deal is valued at $110 million.

The Elements was acquired by Parallel Capital Partners in 2014. Since then, the nearly eight-acre property has undergone a more-than-$3.5 million capital-improvement program, including extensive upgrades to common areas, fitness-center upgrades, new landscaping incorporating seating areas adjacent to water features, a new outdoor workout area, and painted exteriors. American Specialty Health comprises a large portion of the complex, which spans a total of 278,787 square feet.

American Specialty Health provides specialty health care networks and programs, fitness and exercise programs and health solutions for health plans, insurance carriers and employer groups.

“The Elements’ location near UC San Diego, the Scripps Institute and San Diego Supercomputer Center is very attractive to large employers,” says Matt Root, CEO of Parallel Capital Partners. “Sorrento Mesa is a key technology, life-science, pharmaceutical, and commercial hub — making this location perfect for American Specialty Health.”

The listing brokers for this transaction were Mike Hoeck and Matt Carlson with CBRE, and the outside broker was ALT+CO.