Pendulum Property Partners has acquired StoneCrest, a class-A office campus located at 9635, 9645, 9655, and 9665 Granite Ridge Drive in the Kearny Mesa submarket of San Diego County, in an off-market transaction from what SoCal Real Estate has learned is Newport Beach, California–based TH Real Estate. Eastdil Secured had previously marketed the project and represented the seller on the $100.3 million transaction.
StoneCrest totals 327,204 square feet and consists of four institutional-quality office buildings that range from three to six stories.
According to Kevin Hayes, founding partner at Pendulum, “StoneCrest marks our first San Diego acquisition and is part of our 2018 strategy to expand our presence into the region. StoneCrest is among the highest-quality assets in Kearny Mesa, which has the lowest overall office vacancy rate in the county and is poised for significant long-term growth. We plan to make improvements to the property that will enhance the experience for our customers.”
Pendulum’s planned cosmetic upgrades to the property include improvements to the hardscape; adding comfortable seating to the courtyard; updating lobbies, restrooms and common areas; modernizing the fitness center; and improving the on-site food offerings with upgrades to the existing deli and the addition of local food trucks to offer more variety. The property is currently 92.7 percent occupied and houses a mix of local and national tenants including Blue Cross Blue Shield, Mercury Insurance, Vitas Healthcare, and ACE Insurance.
StoneCrest is Pendulum’s fifth Southern California-based acquisition in the past 18 months. The company’s other acquisitions total more than $250 million and include: Jamboree Business Center, a 156,000-square-foot office building in Irvine, California, in February 2017; Peter’s Landing, 94,000-square-foot marina-front office and retail project in Huntington Beach, California, September 2017; Brickyard, a 12-acre site in Ontario, California, entitled for an entertainment/retail district, in September 2017; and Stadium Crossings, a 165,000-square-foot campus in Anaheim, California, in December 2017.