SAN DIEGO-Lincoln Property Co., in a joint venture partnership with Angelo, Gordon & Co., has purchased a high-rise office building at 600 B St. here in downtown San Diego for $49 million. The seller of the 359,218-square-foot building was Nomura CDO 2007-2-600 B Street LLC.
“San Diego is a strategic growth market for our company, and the acquisition of 600 B Street is a tremendous opportunity to significantly increase our asset base in the region,” explains Brig Black, senior vice president of Southern California of Lincoln Property Co., in a prepared statement.
The 24-story office building is 85% occupied. Key tenants include the City of San Diego, Bridgepoint Education and several law firms.
Built in 1974, the building underwent extensive renovations in 1996 and is ENERGY STAR compliant. According to Black, this is the firm’s first local acquisition since establishing a San Diego office in May 2012 primarily to expand its position in the local market.
Throughout Southern California, the company owns and manages more than 11 million square feet of office, industrial and retail property.
According to a Q3 office market report from Jones Lang LaSalle, The office leasing market in San Diego saw another quarter stuck in the doldrums despite a recent uptick in the labor market. A significant contraction in the PBS (Professional and Business Services) employment sector may be partially to blame, as over 3,000 jobs were shed in August alone. Add to this the recent news of 450 more jobs being cut by Bridgepoint Education, and the optimistic 2012 predictions are beginning to lose their luster heading into the fourth quarter, says the report.
“After the spring, which saw the lowest unemployment seen since the recession ended, the summer reversed the trend and the jobless rate inched upwards; August has seen an incremental decrease of 30 basis points however, from 9.3% in July to 9%. The losses seen in the PBS sector were balanced out by expansion in the Trade and Transportation, tourism, and retail industries, netting a slight increase. Despite these piecemeal changes, when reviewing year-over-year changes, the region has added 30,300 jobs in the last 12 months.”