Manulife Sells 2-Building San Diego Office Portfolio With Life Sciences Potential For $145M
An LLC connected to Manulife Investment Management sold two buildings near San Diego’s University Town Center area for $145M.
Newmark, which represented Manulife, announced the sale but not the seller, which was reported by Commercial Property Executive. The Governor Park buildings were part of a portfolio that last traded hands in 2018 for $95M.
The properties are at 6200 and 6220 Greenwich Drive and are 71K SF and 141K SF, respectively.
6200 Greenwich is leased to the University of California, San Diego, through May 2026. 6220 Greenwich is leased to insurance industry company Mitchell International through 2025. The company has placed the entire building up for sublease, which, according to Newmark, means it could be repositioned or converted for life sciences use.
San Diego has long been one of the top three life sciences markets in the country, and its University Town Center submarket is a hub for companies in the industry. Office investment in San Diego was focused on life sciences last year, according to CBRE, which reported that in Q4 2021, $1.34B was invested in life sciences office space. San Diego’s office vacancy at the end of last year was 13.3% across the whole market.
“The Governor Park Portfolio generated tremendous investor interest due to its unique combination of scale, proximity to the center of San Diego’s innovation economy, and the near-term opportunity to capture unmet demand for tech and life science facilities,” said Newmark Executive Managing Director Brunson Howard, who was part of the team representing the seller, in a statement.
Howard represented the seller along with Newmark co-head of U.S. Capital Markets Kevin Shannon and Executive Managing Directors Paul Jones and Ken White. The buyer was not disclosed and property records do not yet reflect the transaction.