The San Diego office of Hines has announced that it has acquired the Pacific Plaza office complex on behalf of National Office Partners Limited Partnership (NOP), its investment partnership with the California Public Employees' Retirement System (CalPERS). The terms of the sale were not disclosed. The three-building, 220,000-ft², Class A office campus is located on Vista Sorrento Parkway in the Del Mar Heights/Torrey Hills submarket of San Diego.
Secured Capital Corp represented the seller, and Hines represented itself in the transaction. Hines will assume property management and leasing responsibilities.
Pacific Plaza was designed by Brian Paul & Associates Architects & Planning. The buildings are set within a beautifully landscaped, eight-acre campus situated on a bluff above Interstate 5 just north of the I-5 and I-805 intersection. Amenities include: state-of-the art building systems; 745 parking spaces in surface lots and two garages; a health club; and exceptional ocean and Torrey Reserve views from all floors.
Pacific Plaza is 100% leased to six prestigious tenants: Qualcomm Inc, Cisco Systems, Iomega, Rudolph and Sletten, The Producers Group, and Pickford Realty.
"Hines is pleased to make this investment in one of the strongest office submarkets in the country," said the lead San Diego-based manager for Hines, Paul Twardowski. "San Diego is a strategic market for Hines, and we will continue to expand our presence in the area through the acquisition and development of well-located office properties."
In August of this year, Hines acquired Golden Eagle Plaza located at 525 B Street in downtown San Diego. Hines was also the development manager for the master planning, design and construction of PETCO Park and currently provides engineering management services to the ballpark.
"Having begun our activity in San Diego in the mid-1990s with the renovation of 110 West A Street in downtown and having successfully developed PETCO Park with the Padres, we are thrilled to continue our growth here with our second office building acquisition," said Hines Senior Vice President Doug Holte.
This transaction represents NOP's 16th major acquisition since its inception in July 1998. In addition, NOP has acquired four major development sites since July 1998, on which three projects have been completed and one is currently under construction at 1180 Peachtree in Atlanta. The CalPERS/Hines partnership sold 15 properties during 2004 with an aggregate value of approximately $2.5 billion. The acquisition of Pacific Plaza will bring the total number of office properties in the NOP portfolio to seven, with a total value in excess of $1 billion.
"Pacific Plaza is an exceptional addition to NOP's portfolio," said Daniel MacEachron, Hines' senior vice president who heads the NOP partnership. "We will continue to seek new development, value-add and existing-building investment opportunities in Southern California and across the country. We have capital commitments through 2006 that provide us with new investment capacity of over $1.0 billion, and we are working actively on additional prospective acquisitions."