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SAN DIEGO, CA-On the heels of its $92.1-million sale of the 353,067-sf Seaview Corporate Center office asset in Sorrento Mesa to Principal Real Estate Investors, the Shidler Group picked up 438,142 sf of mainly R&D space in the San Diego submarket. The locally based investor has shelled out $61.9 million for the space, which comprises a 15-building portfolio involving three business parks that were built in Sorrento Mesa from 1984 through 1989. The majority of Shidler’s recently acquired facilities are located in Centerpark Plaza, which consists of R&D and some office space, and is occupied by tenants including Xerox Corp., EMC and KLA Tencor Corp. The portfolio includes nine facilities in Centerpark Plaza: eight R&D buildings that are each a single-story high and one office property that stands two stories high. The larger cluster of buildings is known as Centerpark Plaza I and is located at Flanders Drive and Mesa Ridge Road. It includes four of the R&D facilities, which range in size from 20,220 sf to 23,977 sf. The office building, which encompasses 45,098 sf and is currently 60% leased, is also part of Centerpark Plaza I. The other cluster of buildings, known as Centerpark Plaza II, is located at Flanders Drive and Mesa Rim Road. It is comprised of the other four R&D properties, which vary in size from 13,537 sf to 23,409 sf. The other six buildings in the portfolio are housed in Pacific Point Business Park and Sorrento Tech Business Park. Three of the facilities are located in Pacific Point Business Park, which stands at Pacific Center Boulevard. Tenants in the fully occupied facilities include Gamma-Metrics, Tachyon Inc. and Fujitsu. These buildings range in size from 41,340 sf to 54,712 sf. The remaining three facilities are located in Sorrento Tech Business Park, which is situated on Barnes Canyon Road. The sizes of these buildings vary from 25,477 sf to 37,866 sf. Two of the facilities are occupied by Information Systems and Lightpointe Communications, while the third building is vacant. The Shidler Group purchased the portfolio from Mullrock Umbrella LLC, which is a partnership between the Muller Co. and Rockwood Capital. The LLC bought the portfolio in 2002 from Equity Office Properties Trust for $56.7 million, at a time when Shidler was also contemplating a bid for the assets. However, Shidler was discouraged by the market conditions at the time, as partner Matt Root explains. “It was during the tech meltdown and leasing velocity was virtually nonexistent,” he tells GlobeSt.com. This time around, Shidler has already leased up 45,000 sf during escrow, Root notes. He says that between the maturation of the Sorrento Mesa submarket, the dearth of buildable sites here, the shift to institutional ownership of many of the local landmark assets, and the resurgence of biotech companies in the area, Shidler expects leasing velocity to pick up over the next five years. The company plans to hold the assets for five to seven years, Root says. Jay Borzi, Stephen Silk and Adam Edwards of Secured Capital Corp. acted on behalf of both parties in the recent transaction. Eric Northbrook of Cushman & Wakefield and Chad Urie of Colliers International were the San Diego market contacts.

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