Why The Irvine Co. Is So Bullish on San Diego’s UTC

The Irvine Co. is bullish on San Diego’s UTC office market. The firm, which already owns a number of office buildings in the market, recently acquired La Jolla Reserve, a 302,000 square foot three-building office campus in the UTC market, from Sunroad Enterprises for an undisclosed price. The asset is a trophy property in the market, and adds to the Irvine Co.’s already strong portfolio. UTC is rapidly becoming a tech hub in the market, which has fueled the Irvine Co.’s interest and optimistic outlook on office leasing activity.

“San Diego, generally, and La Jolla UTC specifically are hubs of innovation,” John Turner, regional vice president, Irvine Co. Office Properties. “With the upgrades at Westfield UTC now complete, the trolley expansion underway and the proximity to the talent at UC San Diego, La Jolla UTC has emerged as one of the premier submarkets in the region and nation. The weather, the access to outstanding housing and the dynamic workplace communities make it an incredibly desirable place to do business deep into the foreseeable future.”

Last month, the Irvine Co. signed 115,000 square feet in leases at another property in the market, La Jolla UTC. The leasing activity underscored the tech trends in the market. The La Jolla Reserve, which is 78% leased, is positioned to attract a similar roster of tech tenants. Current tenants include Banner Bank, Cooley LLP, Provident Insurance Group, Regus, Shell and Systran. Aside from its leasing upside, Irvine Co. was attracted to the property’s quality features. “La Jolla Reserve’s distinctive architecture, elegant landscaping and passive recreational spaces, flexible floor plates, modern interior features, attractive location, and ample on-site parking made it an outstanding fit with our portfolio,” explains Turner.

This is the Irvine Co.’s third acquisition in the area in the last 12 months, including Gateway at Torrey Hills and Township 14. It has a growing interest in the market, and has actually described this acquisition as an illustration of its commitment to the market. As a result, the company is going to continue to look for opportunities in both the UTC submarket and San Diego in general. “The economy is strong, as is interest in leasing at our workplace communities,” says Turner. “We look forward to another year of economic expansion. Our focus has always been delivering vibrant workplace communities, and that will continue.”