SAN DIEGO—Brookwood Financial Partners has acquired a seven-building portfolio of class A and class B office buildings in suburban San Diego for $113 million. The portfolio, which totals 484,573 square feet of multi-tenant space, includes: Civic View Corporate Center, a four-story class A office building containing 95,446 square feet located in San Marcos, CA; Ventana Real, which consists of two three-story and one two-story class A office buildings totaling 219,162 square feet located in Carlsbad, CA; and The Campus, which consists of two one-story and one two-story class B office buildings totaling 219,162 square feet, also located in Carlsbad, CA.

The portfolio has a current occupancy of 71.3%. With this acquisition, Brookwood now owns and manages 14 buildings in the greater San Diego area, containing over 921,000 square feet of space.

“These three properties were acquired as a portfolio, but each one of the assets represents a unique investment opportunity for Brookwood and our investors,” said Thomas Brown, Brookwood's president and director of real estate acquisitions. “These are high-quality properties, which we were able to purchase for a substantial discount to replacement cost in markets where both rents and occupancies are rising.”

According to DTZ, a global, integrated property services company, the San Diego office market is currently enjoying an upward trend, experiencing positive absorption in 17 out of the last 18 quarters and recording the strongest quarterly leasing on record in fourth quarter of 2014.

“One of the attributes that most attracted us to this portfolio is that it contains some of the few remaining blocks of large, contiguous vacant space in Carlsbad, which is in short supply,” said Kurt Zernich, Brookwood's director of asset management. “We will be able to offer prospective large-block tenants best-in-class product with high-end finishes and an array of amenities that cannot be found elsewhere in the market. Since the previous owner meticulously maintained and upgraded the portfolio, these properties will require very little capital and will have a number of market-ready suites.”

“The Carlsbad submarket in particular has emulated the San Diego market with a current vacancy rate of 15.4%, still well above its pre-recession peak of 8%. As the downtown markets continue to tighten, we believe that the portfolio will benefit from the overall downward trend in vacancy and concomitant increases in market rents,” Brown said.