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Ascentris, a Denver-based real estate private equity firm, and Harbor Associates, a Southern California-based office operator announced the sale of The Pinnacle, a 110K sf Class A office property located in the Rancho Bernardo Submarket of San Diego, CA.
Ascentris and Harbor acquired the property in 2018 and immediately implemented a renovation program that included interior and exterior aesthetic improvements, upgrades to the outdoor common area patio, refurbishment of the building lobby, improvements to the showers and locker rooms, and the addition of electric vehicle charging stations. At the time of acquisition, the property was 84% leased and trending lower due to known vacates. During their ownership, Ascentris and Harbor leased the property to 98% by completing 71K sf of new and renewal leasing.
“The Pinnacle is one of the premier multitenant office buildings in the Rancho Bernardo submarket. The building has excellent access to Interstate 15 and the various suburbs of northern San Diego. Over the past three years, the property benefited from a flight to quality; during that time, Ascentris and Harbor increased rental rates by over 20%. The recent leasing by FAANG tenants, which served to decrease available space in the Interstate 15 corridor and solidify Rancho Bernardo as an institutional submarket, made year-end 2021 an opportune time to market the property for sale,” said Ascentris Vice President, Jeff Higgins in a statement.
“Well-located and class A office assets are highly desirable despite on-going COVID concerns. The successful repositioning and lease up of The Pinnacle, along with submarket momentum, made now an ideal time to sell the asset. We’re actively looking to acquire similar high quality office properties throughout San Diego,” said Harbor Principal, Justin Loiacono.
Jay Alexander and Tim Olson of Jones Lang LaSalle leased the property on behalf of Ascentris and Harbor, while Lynn LaChapelle, Bob Prendergast, Sach Kirpalani, and Kurt Luedtke of Jones Lang LaSalle represented Ascentris and Harbor on the sale.
Ascentris is a real estate private equity firm based in Denver, Colorado that manages a series of fully discretionary institutional vehicles targeting both value-add and core investments across the major property types and geographic regions within the United States.
Harbor is a value-add office operating platform focused on acquiring and repositioning under-performing commercial real estate assets throughout Southern California and Colorado.