Project for $73 Million: Parallel & Zell Group Buy San Diego

San Diego Office Project Sold for $72.5 million.

In San Diego, Expanding its San Diego footprint and adding nearly 300,000 sq ft to its portfolio, Parallel Capital Partners has purchased a three-building Class A office complex in Sorrento Mesa, San Diego’s premier technology hub, for $72.5 million.

Parallel purchased the project, known as Wateridge Plaza, in a joint venture with Equity Group Investments, a Chicago-based private investment firm founded by famed entrepreneur Sam Zell, from a partnership of Beacon Capital Partners and C-III Realty. The broker for the seller was Adam Edwards, Eastdil Secured.

Constructed in 1984, the office campus consists of three five- and six-story buildings totaling 278,787 sf as well as a parking complex. The eight-acre project includes future development potential of 168,000sf of office. Parallel has retained architectural firm Gensler and Glanz Signing & Graphics to collaborate and implement the additional improvements.

In The principals of Parallel Capital Partners, Matt Root, Jim Ingebritsen and Jim Reynolds, have a successful history in the Sorrento Mesa market, and in 2002 purchased Seaview Corporate Center for $65 million which they sold to Principal Financial Group in 2004 for $92.1 million. They re-purchased that property at the height of the credit crisis in 2009 from Principal Financial Group for $75 million and sold it to John Hancock Real Estate in 2011 for $109 million.

Parallel added more than $400 million in commercial real estate to its portfolio last year, with key purchases in Dallas and Orange County.