| We're not referring to the TV show but to our conversation last week with Parallel Capital Partners' Jim Ingebritsen. The private company, in the midst of closing on 500k SF of acquisitions, was formed in April to take on the Shidler Group?s West Coast investment operations. |
| Jim tells us the properties are being purchased from a partnership controlled by the Collins and Miller families, which gathered and built the assets over the past 30 years. It consists of: 300k SF in Sorrento Mesa, primarily life science and industrial product; a 150k SF R&D building in the Rancho Bernardo market known as One Technology; and an office building at the corner of Herschel and Wall in the Village of La Jolla. For investment, he notes San Diego is a very competitive landscape and you've got to look hard to find deals to generate returns that make sense. ?That typically means that we're migrating to off-market or less efficiently marketed opportunities.? |
| The GSA recently signed a 25k-plus SF lease on behalf of the US Veterans Benefits Administration in Parallel Capital's City Square Office Towers in downtown Phoenix. The deal pushes aggregate occupancy at the three-building, 730k SF complex to 72%. The company also owns the 375k SF US Bank Tower (above) just down the street, where advertising and marketing firm R&R Partners inked a full-floor, 14k SF lease in a deal that was executed with incredible speed—10 business days from start to finish. (The tenant's name only has one letter, so paperwork wasn't too hard.) |
| With most of San Diego's office submarkets tightening, Parallel's also seeing an uptick in tenant demand closer to home, at holdings such as Torrey Hills Corporate Center (11250 El Camino Real) in Del Mar Heights. (It's nice they're coming home, but would it have hurt to call a couple times in the past year?) Jim tells us Parallel?s three founders, who also include Matt Root and Jim Reynolds, were partners in the Shidler Group for 20 years, and ?this is a continuation of what we were doing.? The company focuses on buying existing property—office, industrial, and life science product in the Pacific Southwest—that can be repositioned through capital infusion and aggressive leasing. |
| The company also owns Gateway Corporate Center (1370 Valley Vista Dr) in Diamond Bar. While at Shidler, the partners briefly flirted with the public markets, forming Pacific Office Properties Trust in March 2008. However, the public model, which typically involves buying, repositioning, and holding for the long-term, wasn't a good fit for the type of investment they wanted to do: buy, reposition, sell, and then redeploy. ?It just became apparent that it was time for us to step back into the private space.? |
ACCORDING TO JIM
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Related Topics:
Del Mar Heights
, Diamond Bar
, Gateway Corporate Center
, Jim Reynolds
, La Jolla
, Matt Root
, Pacific Office Properties Trust
, Pacific Southwest
, Parallel Capital Partners
, Rancho Bernardo
, Shidler Group
, Sorrento Mesa
, The GSA
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