SAN DIEGO, CA—Cassidy Turley reports the $40,150,000 sale of a three-project office portfolio located in the Sorrento Mesa neighborhood. The projects, totaling 190,154 square feet, were sold by TA Associates Realty to a partnership between DRA Advisors LLC and Cypress Office Properties, LLC. All are 100% leased. Rick Reeder and Brad Tecca of Cassidy Turley's San Diego office represented the seller and buyer.

“These are high quality office assets, featuring exceptional architectural detail and finishes and superb locations within Sorrento Mesa, one of the world's leading technology hubs with industry giants including Qualcomm, Samsung and Sony,” said Reeder. “All three projects are very well stabilized with strong credit tenants for secure cash flow and fixed income growth. With in-place rents significantly below current market rents, the portfolio offers the ability to enhance value in a market with outstanding tenant demand and significant barriers to entry including declining vacancy and no new speculative construction.”

The Sorrento Mesa office portfolio comprises 5910 Pacific Center, a three-story building set on 2.47 acres with 50,882 square feet; Pacific Heights Plaza, a two-story, 51,261-square-foot building set on 2.82 acres at 9985 Pacific Heights Boulevard; and Sorrento Heights, a two-building project totaling 88,011 square feet on a 5.2-acre site at 10020 and 9980 Huennekens Street.

The projects are occupied by tenants across a diverse range of industries, including defense, technology, retail and marketing. Major tenants include Harte-Hanks Intelligence Inc., Solera Wireless and Tearlab Corp. in Sorrento Heights; Charlotte Russe, Inc., in Pacific Center; and Raytheon Company and DPR Construction in Pacific Heights Plaza. DRA and Cypress plan to upgrade the common areas of each building within the portfolio. This strategy is expected to strengthen each projects' position within the Sorrento Mesa submarket and improve tenant retention and new leasing efforts.

“The portfolio is ideally positioned to take advantage of current market conditions,” said Tecca. “Strong employment growth in Sorrento Mesa is resulting in huge tenant demand, shrinking available leasing options and setting the stage for near-term rent spikes.”