Prudential Scoops Up Mission Valley Office Building

SAN DIEGO-Jones Lang LaSalle's Capital Markets has completed the sale of Rio San Diego Plaza, a class A, 189,490-square-foot office building in San Diego's highly-desirable suburban Mission Valley submarket. Prudential Real Estate Investors purchased the six-story property from AEW Capital Management, which sold it on behalf of one of its institutional clients.

Managing Directors Lynn LaChapelle and Bob Prendergast led the JLL team on this transaction.

“With an abundance of investment-grade tenants and a location in one of San Diego's most popular and reliable submarkets, Rio San Diego Plaza is an outstanding property for investors,” LaChapelle said. “The property's above average floor plates and parking ratio are highly desired by many of Mission Valley's tenants and certainly offers a competitive leasing advantage. Mission Valley's class A office vacancy rate is well below 10% and with no development slated for the foreseeable future; Rio San Diego Plaza offered a great chance for investors to buy in a high-barrier-to-entry market that is poised to perform very well for years to come.”

San Diego's economy is in the midst of a sustained recovery that has greatly benefitted the city's office market. Over the past year, the city's unemployment rate has dipped two percentage points to less than eight percent, which has boosted office absorption of more than 850,000 square feet as of mid-year. With optimistic employment forecasts, limited construction, sustained occupancy gains and increasing rents, the reign of tenant-favorable conditions is coming to an end in the city.

Located at the intersection of Rio San Diego Drive and Friars Road, Rio San Diego Plaza offers immediate access to Interstate 8, Interstate 15 and State Route 163. The building is also near the San Diego Trolley, two regional malls, and numerous hospitality and leisure venues.

The environmentally friendly building has received both LEED Silver and Energy Star certification.