Shorenstein Properties LLC has acquired Sorrento Towers North & South, two class-A office projects in four buildings located in the Sorrento Mesa submarket of San Diego, according to a release from a representative of Cushman & Wakefield (C&W). The projects total 565,000 square feet.
The sale price and seller were not disclosed in the release. SoCal Real Estate reached out to the rep for this information, but the rep was unable to supply it.
Sorrento Towers is prominently located at the intersection of I-5 and I-805 and serves as the gateway to Sorrento Mesa, San Diego’s tech hub, according to the statement. First developed in 1989 and renovated in 2014, the North buildings consist of two seven-story structures totaling approximately 286,000 square feet located at 5355 and 5375 Mira Sorrento Place. Developed in 2001, the South buildings consist of two six-story structures totaling approximately 278,000 square feet located at 9276 and 9330 Scranton Road.
The release also says the property features high-image glass exteriors, modern building lobbies and common areas, outdoor lounge areas, modern fitness centers, state-of-the-art conference facilities, and structured parking. The buildings are also adjacent to the Sorrento Court (North) and Sorrento Plaza (South) retail centers.
Rick Reeder, executive managing director; and Brad Tecca, executive director with C&W’s Capital Markets services in San Diego advised Shorenstein on the transaction, the release says.
Tecca is quoted in the release as saying, “Shorenstein’s acquisition of Sorrento Towers confirms the increasing confidence investors have in the San Diego market as underlying leasing fundamentals continue to improve.” He adds, “Decreasing vacancy, rising rental rates, and strong tenant demand, in addition to limited new construction across just about every submarket, has investors keying in on acquisition opportunities.”
Companies with a large presence in the Sorrento Mesa area include Qualcomm, Dexcom, Google, Sony, Verizon, TD Ameritrade, Samsung, Thermo Fisher Scientific, Quidel, NuVasive, and Time Warner.
As we recently reported, San Diego office tenants “are pushing into emerging microdistricts as space options dwindle and rents rise in areas such as La Jolla, Mission Valley, and Del Mar Heights,” according to a Q3 report by Savills Studley. The report adds that the demand is spilling over into Sorrento Mesa and nearby neighborhoods.