Denver, Colorado (January 6, 2022)
Ascentris, a Denver-based real estate private equity firm, and Harbor Associates, a Southern California-based office operator, announced the sale of The Pinnacle, a 110,000-square-foot Class A office property located in the Rancho Bernardo submarket of San Diego, California.
Ascentris and Harbor acquired the property in 2018 and implemented a renovation program that included interior and exterior improvements, upgrades to the outdoor patio common areas, refurbishment of the building lobby, improvements to locker rooms and showers, and the addition of electric vehicle charging stations.
At the time of acquisition, the property was 84% leased and trending lower due to anticipated tenant departures. During their ownership, Ascentris and Harbor increased occupancy to 98% by completing 71,000 square feet of new and renewal leasing.
“The Pinnacle is one of the premier multi-tenant office buildings in the Rancho Bernardo submarket,” said Ascentris Vice President Jeff Higgins. “The building has excellent access to Interstate 15 and the various suburbs of northern San Diego. Over the past three years, the property benefited from a flight to quality, during which Ascentris and Harbor increased rental rates by more than 20%.
“The recent leasing by FAANG tenants, which reduced available space in the Interstate 15 corridor and reinforced Rancho Bernardo as an institutional submarket, made year-end 2021 an opportune time to market the property for sale,” Higgins added.
“Well-located and Class A office assets remain highly desirable despite ongoing COVID concerns,” said Harbor Principal Justin Loiacono. “The successful repositioning and lease-up of The Pinnacle, combined with strong submarket momentum, made this an ideal time to sell the asset. We are actively seeking similar high-quality office acquisitions throughout San Diego.”
Jay Alexander and Tim Olson of Jones Lang LaSalle handled leasing on behalf of Ascentris and Harbor. Lynn LaChapelle, Bob Prendergast, Sach Kirpalani and Kurt Luedtke of Jones Lang LaSalle represented the ownership group in the sale.
About Ascentris
Ascentris is a real estate private equity firm based in Denver, Colorado. The firm manages a series of fully discretionary institutional vehicles targeting both value-add and core investments across major property types and geographic regions within the United States.
Since 2003, Ascentris’ management team has relied on an investment philosophy and organizational structure designed to provide investors with access to opportunities ahead of the market while delivering high levels of service, transparency and accountability. Ascentris is a privately held and management-owned SEC-registered investment adviser committed to putting its investors’ needs first. Additional information is available at https://ascentris.com/.
About Harbor Associates
Harbor Associates is a value-add office operating platform focused on acquiring and repositioning underperforming commercial real estate assets throughout Southern California and Colorado.
Since its founding in 2015, the firm has acquired more than 4 million square feet of properties with a total capitalization exceeding $1 billion. Harbor operates as a joint venture with The Bascom Group, LLC. Additional information is available at www.harborassociates.com.
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