Cornerstone Heights Center Changes Hands

 SAN DIEGO—Buchanan Street Partners has acquired Cornerstone Heights Corporate Center, a two-building office complex located at 5959 and 6059 Cornerstone Court West in Sorrento Mesa, a major technology-hub neighborhood in San Diego. The $23.1 million acquisition reflects Buchanan Street's ongoing investment strategy in the West, where the Newport Beach-based investor has been an active buyer in value-add and core-plus office properties.

“This investment furthers our portfolio growth with a stabilized, high quality office building in an established market that is in high demand by technology companies,” said Tim Ballard, president of Buchanan Street Partners.

The firm acquired the 98,000-square-foot office complex in an all-cash deal from a partnership between Lincoln Property Company and Artemis Real Estate Partners. The project is 91% leased and benefits from a recent $4.5 million renovation that included the addition of collaborative workspaces, contemporary kitchens and meeting areas, and exposed high ceilings to the building.

“Office buildings that provide a contemporary work setting with abundant onsite amenities are in high demand, especially in markets dominated by technology users,” added Ballard. “This investment is appealing for the value that can be created through the planned improvements in a submarket with sound fundamentals.”

The Cornerstone Heights tenant roster includes Verimatrix, Inc., Konica Minolta Business Solutions and Tillster, Inc. The complex has one office space available totaling 8,708 rentable square feet, with DTZ Capital Markets handling leasing.

Buchanan Street represented itself in the transaction, while the seller was represented by Rick Reeder and Brad Tecca of DTZ, San Diego. Cornerstone Heights will continue to be managed by Unrie Real Estate Group.

Buchanan Street Partners is a national real estate investment management firm that invests debt and equity capital on behalf of institutional and private investors.