Regent Properties, a real estate investment and development firm, announced it has acquired a portfolio of high-rise commercial office buildings in downtown San Diego for $420 million.
The firm did not disclose further terms of the sale. This acquisition is Regent’s first investment via Regent Opportunity Fund V, launched last year.
The properties, 1 Columbia Place, 701 B Street, 2 Columbia Place, and 707 Broadway, represent a combined total of 1.5 million square feet of commercial space, or approximately 16% of top-grade office inventory downtown.
The transaction reflects a price of $281 per square foot. The portfolio also includes the 6th & A Parking Garage.
“We are pleased to have acquired this portfolio of assets in such a supply constrained metropolitan area and look forward to being an integral part of the city’s thriving central business district,” Eric Fleiss, CEO of Regent Properties, said. “With this investment, Regent is continuing its push to acquire high-quality office projects across the Sunbelt. We are seeking to purchase over $2 billion of assets over the next 24 months.”
Sam Kraus, an executive vice president who heads acquisitions at Regent, said “San Diego has the strongest relative value compared to any other tier-one location on the West Coast.”
“The opportunity to acquire these particular assets to improve, lease-up and stabilize them was especially compelling given our conviction in the long-term growth prospects of downtown San Diego.” he added.
Prior to Regent’s acquisition, the previous owner had extensively renovated the portfolio’s common areas, including upgraded lobbies and outdoor amenities.
Regent plans to augment these renovations with additional hospitality-oriented improvements which focus on tenant engagement. They include new fitness and conference centers, eateries and community gathering places such as outdoor terraces and wine lounges.
“To successfully attract and retain tenants today, we need to give them a reason to want to be at our projects,” Matthew Benbassat, COO of Regent Properties, said. “We are confident our ready-to-lease spec suite program, combined with our curated tenant experiences, will deliver on that promise to our tenants for many years to come.”
Founded in 1989, Regent Properties, LLC is an SEC-registered real estate development and investment management firm based in Los Angeles.
The firm manages a variety of investment vehicles, including comingled funds and separate accounts, concentrated in five sunbelt markets on behalf of an institutional client base. The value of Regent’s assets under management after this transaction will be $1.8 billion.