San Diego Market Produces Big Returns for Investors

Matt Root

Parallel Capital Partners has achieved substantial returns on a Sorrento Valley office portfolio. Parallel purchased the portfolio in 2012 from Collins Development Co. for $63 million, and has just sold the final 12 office buildings in the portfolio for $112 million to Longfellow Real Estate Partners. Along with two earlier sales, the entire portfolio traded hands for $149.2 million. Parallel infused $10 million into the final 12 buildings, known as the Inspire Portfolio.

“The Collins portfolio represented a rare opportunity to acquire a critical mass of non-homogenous but extremely well located light industrial and office buildings in La Jolla, Sorrento Valley and Rancho Bernardo,” Matt Root, CEO at Parallel Capital Partners, tells GlobeSt.com. “Not all that long ago, light industrial buildings were considered a step down for premier tenants. The market has changed. Now from New York to L.A., creative spaces are not only in demand as places to work, they now are sought after, command premium prices and influence the design and direction of traditional class-A buildings. Changing real estate markets and economic factors over the last decade have dictated that older buildings accommodate uses disparate from their original design intents.”