SAN DIEGO – Expanding its San Diego footprint and adding nearly 300,000 square feet to its portfolio, Parallel Capital Partners has acquired a three-building Class A office complex in Sorrento Mesa – San Diego’s premier technology hub – for $72.5 million.
Parallel purchased the project, known as Wateridge Plaza, in a joint venture with Equity Group Investments, a Chicago-based private investment firm founded by famed entrepreneur Sam Zell, from a partnership of Beacon Capital Partners and C-III Realty. The broker for the seller was Adam Edwards, Eastdil Secured.
Constructed in 1984, the office campus consists of three five- and six-story buildings totaling 278,787 sf as well as a parking complex. The eight-acre project includes future development potential of 168,000sf of office. Parallel has retained architectural firm Gensler and Glanz Signing & Graphics to collaborate and implement the additional improvements.
The principals of Parallel Capital Partners – Matt Root, Jim Ingebritsen and Jim Reynolds – have a successful history in the Sorrento Mesa market, and in 2002 acquired Seaview Corporate Center for $65 million which they sold to Principal Financial Group in 2004 for $92.1 million. They re-acquired that property at the height of the credit crisis in 2009 from Principal Financial Group for $75 million and sold it to John Hancock Real Estate in 2011 for $109 million.
Parallel added more than $400 million in commercial real estate to its portfolio last year, with key purchases in Dallas and Orange County.