SAN DIEGO, Calif., October 25, 2018 – Cushman & Wakefield today announced it has advised Shorenstein Properties LLC (“Shorenstein” or the “Company”), an owner and operator of high-quality office, residential and mixed-use properties across the U.S., on their acquisition of Sorrento Towers North & South. Sorrento Towers consists of two Class A office projects in San Diego totaling 565,000 square feet (“sf”) in four buildings. Veteran investment specialists Rick Reeder, Executive Managing Director, and Brad Tecca, Executive Director with Cushman & Wakefield’s Capital Markets services, in San Diego advised Shorenstein on the transaction.
Mr. Tecca, said, “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 added, “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.”
Prominently located at the intersection of Interstates 5 and 805, Sorrento Towers North & South serve as the gateway to Sorrento Mesa, San Diego’s tech hub. First developed in 1989 and renovated in 2014, the North buildings consist of two seven-story structures totaling approximately 286,000 sf located at 5355 and 5375 Mira Sorrento Place. Developed in 2001, the South buildings consist of two six-story structures totaling approximately 278,000 sf located at 9276 and 9330 Scranton Road. Offering superb freeway visibility and accessibility, Sorrento Towers feature 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 ideally adjacent to the Sorrento Court (North) and Sorrento Plaza (South) retail centers.
Mr. Reeder added, “The Sorrento Towers projects are iconic real estate developments located in one of Southern California’s most exciting coastal markets, home to a significant concentration of high growth companies from a variety of industries that continue to fuel the regional economy. Already positioned as the submarket’s leading Class A towers and always well maintained, the buildings will benefit from Shorenstein’s well-established reputation throughout the real estate industry of owning high quality real estate and providing tenants with best-in-class service and workplace environments.”
Notable companies with a large presence in the area include Qualcomm, Dexcom, Google, Sony, Verizon, TD Ameritrade, Samsung, Thermo Fisher Scientific, Quidel, NuVasive, and Time Warner.
About Shorenstein Properties
Founded in 1924, Shorenstein Properties LLC is a privately-owned, real estate firm that owns and operates high-quality office, residential and mixed-use properties across the U.S., with offices in San Francisco and New York. Since 1992, Shorenstein has sponsored eleven closed-end investment funds with total equity commitments of $7.9 billion, of which Shorenstein committed $648.5 million. The firm uses its integrated investment and operating capabilities to take advantage of opportunities that, at the particular time in the investment cycle, offer the most attractive risk-adjusted returns.
Investments have included ground-up developments, asset repositioning and stabilized assets; investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. These funds have invested in properties totaling 64.1 million square feet in transactions with a gross investment value in excess of $15.2 billion.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.