Sorrento Towers, 5355 and 5375 Mira Sorrento Place, was acquired by Prime US REIT (PRIME) of Singapore from Shorenstein Properties
PRIM trades on the Singapore Exchange Securities Trading Limits ticker as OXMU.
Totaling 296,327 square feet, the two seven-story buildings that comprise Sorrento Towers were built in 1990 and renovated since.
The office project was 98% leased at the time of sale.
KBS, a commercial real estate investment firm based in Newport Beach, serves as the U.S. portfolio asset manager for PRIME and assisted in its acquisition of Sorrento Towers.
Brokering the sale from Newmark, a commercial real estate agency, were Kevin Shannon, co-head of U.S. capital markets, and Brunson Howard and Ken White, executive managing directors.
Attorneys Bruce Fisher, Tatyana Litovsky, Christine Fan and Howard Chu and paralegal Amanda Kennedy of the law firm Greenberg Taurig represented PRIME as legal counsel.
“Strong demand, limited supply and increasing conversions from office to life science are causing office vacancy rates in Sorrento Valley to drop significantly,” said Tim Helgeson, asset manager for Sorrento Towers and senior vice president of KBS.
“In fact, from Q4 (fourth quarter2020) to Q1 2021, Class A office space inventory in this submarket experienced a 3.5% reduction in direct office vacancy due solely to life science conversions. This makes best-in-class assets like Sorrento Towers increasingly in demand among office users in the market,” Helgeson said. “Sorrento Towers is a high-quality asset in a thriving retch submarket in one of the most coveted regions in the country. Office tenants in the San Diego market are eager to occupy space at properties like Sorrento Towers that have so much to offer.”