San Diego-based real estate investment firm Parallel Capital Partners Inc. has disposed of the Inspire Portfolio, a 12-building, $112 million office and lab portfolio in the Sorrento Valley submarket of San Diego, according to a release from a representative of Parallel Capital Partners. The statement says the buyer of the 318,969-square-foot portfolio was Longfellow Real Estate Partners.
The Inspire Portfolio includes:
• 11535-11585 Sorrento Valley Road, spanning 127,991 square feet
• 11772 Sorrento Valley Road, spanning 19,193 square feet
• 11760 Sorrento Valley Road, spanning 35,731 square feet
• 11750 Sorrento Valley Road, spanning 19,921 square feet
• 11558-11588 Sorrento Valley Road, spanning 85,121 square feet
• 11494 Sorrento Valley Road, spanning 31,012 square feet
The portfolio is currently 95 percent leased to a roster of 81 life-science, technology, and research and development tenants, according to the release. Parallel reports that its CEO Matt Root says the firm purchased the Inspire assets as part of a larger portfolio acquired from Collins Development Company in 2012. That $63 million acquisition included the Sorrento Valley assets as well as two other San Diego–based assets: the 31,250-square-foot Herschel Building in La Jolla and the nine-building, 152,730-square-foot One Technology Place in Rancho Bernardo.
Parallel sold One Technology Place (10905-10949 Technology Place) to Menlo Equities for $22 million in December 2014 and the Herschel building (1100 Wall Street) to the McCarthy family (McCarthy Family Vineyards) for $15.2 million in February 2015, the release says, essentially buying the Collins portfolio for $63.4 million and selling it for $149.2 million.
According to the statement, Longfellow plans to continue the “proven life-science conversion plan” Parallel began, repositioning the remaining 50 percent of the portfolio. Over a period of six years, Parallel infused more than $10 million in renovations and upgrades to the Inspire Collection, the release says.
Root is quoted in the release as saying, “This latest transaction confirms institutional investors are still focused on well-positioned acquisition opportunities with demonstrable value-added upside in key submarkets.” He adds, “We believe office and lab space need to acknowledge the human side of the people to foster work-related creativity. It isn’t work versus life anymore — it’s work and life — and creative space supports both with its flexible, interactive style. This approach has helped our tenants grow, attract and retain the best talent.”
According to the release, the listing brokers for the 12-building transaction were Nick Frasco, Nick Psyllos, and Michael Leggett of HFF.
Parallel is no stranger to large transactions. As SoCal Real Estate reported in June, the firm 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.