LOS ANGELES, June 22, 2021 /PRNewswire/ -- Regent Properties ("Regent"), a real estate investment and development firm, today announced it has acquired a portfolio of four high-rise commercial office buildings located in downtown San Diego, for $420 million. Further terms of the sale were not disclosed. This acquisition is Regent's first investment via Regent Opportunity Fund V.
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 percent of all Class A/B office inventory in downtown San Diego. 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," said 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."
"As an emerging gateway city, San Diego has the strongest relative value compared to any other tier-one location on the West Coast," said 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."
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 and include activating 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," added Matthew Benbassat, COO of Regent Properties. "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."
The combination of San Diego's coastal location, strong mass transit connectivity, and higher quality of life than surrounding areas, has prompted an influx of new business tenants across various sectors, most notably in life sciences. Real estate analyst firm CoreLogic recently predicted San Diego home prices could increase by more than 8 percent in 2021, more than anywhere else in the nation, with income growth for highly skilled positions being a leading factor.
About Regent Properties
Founded in 1989, Regent Properties, LLC is an SEC-registered real estate development and investment management firm based in Los Angeles, California. The company is a vertically integrated operator and fund manager with current investments concentrated in five sunbelt markets. Regent Properties manages a variety of investment vehicles, including comingled funds and separate accounts, on behalf of a sophisticated institutional client base. Regent's assets under management after this transaction will be $1.8 billion. For more information, visit www.regentproperties.com.
Mickey Mandelbaum, Prosek Partners
Aidan O'Connor, Prosek Partners
SOURCE Regent Properties, LLC