SAN DIEGO-Starwood Capital Group has completed, through a controlled affiliate, the acquisition of a 12-building office and R&D portfolio. Terms of the transaction were not disclosed.
The properties, totaling 1.1 million sf, are located in Sorrento Mesa and Rancho Bernardo - two of the fastest-growing submarkets in San Diego.
"San Diego has recently experienced some of the largest job gains of any market in the country, and is home to a host of leading firms in industries with tremendous growth prospects," said Mark Deason, SVP at Starwood Capital Group. "We are pleased to expand our presence in the market through this acquisition."
"In keeping with our firm's longstanding investment philosophy, we believe we are purchasing assets below replacement cost that will generate strong cash-on-cash returns in a metro area with minimal new supply, strong fundamentals and high barriers to entry," said Christopher Graham, senior managing director at Starwood Capital Group. "This portfolio is well-positioned to capitalize on the robust recovery in the region."
The properties are relatively newly constructed—with an average vintage of 2002—and feature open floor plans and high ceilings. The portfolio is 91% leased with minimal rollover in the near term.
"These buildings are well-leased with high-quality tenants, and boast modern designs and systems that are ideal for use as corporate headquarters," said Deason. "We are excited to add such highly functional and attractive properties to our growing portfolio of office buildings throughout the U.S. and abroad."
Starwood Capital Group, Greenwich CT, is a private investment firm with a core focus on global real estate.