Regent Properties, a Los Angeles-based real estate investment and development firm founded in 1989, announced today its acquisition of four high-rise commercial office buildings in downtown San Diego. The four buildings total 1.5 million square feet, which equates to roughly 16% of all Class A/B office space in the area.
According to a press release, Regent Properties, making their first investment with the Regent Opportunity Fund V, acquired the buildings for $420 million.
“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,” says Eric Fleiss, CEO of Regent Properties. “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.”
Regent Properties has plans to augment renovations made by the properties’ previous owner. This means adding new fitness and conference centers, eateries, and gathering places like outdoor terraces and wine lounges.
“As an emerging gateway city, San Diego has the strongest relative value compared to any other tier-one location on the West Coast,” adds Sam Kraus, Regent Properties’ EVP and Head of Acquisitions. “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.”
The four properties are 1 and 2 Columbia Place, 701 B Street, and 707 Broadway.