Innovatus Capital Buys San Diego Office Building

The Pinnacle. Image courtesy of Harbour Associates

Innovatus Capital Partners has acquired The Pinnacle, a 110,128-square-foot office building in San Diego. The seller was a joint venture of Ascentris and Harbour Associates. LPC West, a Lincoln Property Co. arm, has been tapped to manage the asset.

At the time it changed hands, the property was fully leased to a tenant roster that included the California Department of General Services and specialized software providers VOTEC Corp. and Applications International Corp., among others.

The five-story asset offers floorplates averaging 22,022 square feet and has a parking ration of 4 per 1,000 square feet. The 2007-built property was renovated in 2018, when the joint venture acquired it from The Muller Co. for $31.2 million. Upgrades included modernization of the lobby and the outdoor patio as well as the addition of an electric vehicle charging station.

Located at 10920 Via Frontera, within the Rancho Bernardo neighborhood, the asset is part of a large office campus just west of Interstate 15. The business park is 24 miles north of downtown San Diego and is also home to tech giants such as Amazon, Apple, Sony and HP.

A stable market 

Supported by demand from the growing technology and life science sectors, the San Diego office market registered no change in occupancy in the 12 months ending in November 2021, a recent CommercialEdge report shows. Despite the national average increasing by 140 basis points to 15.2 percent, vacancy in San Diego remained steady at 13.8 percent.

Moreover, San Diego office rents were up by 2.4 percent year-over-year through November, with spaces listed at an average price of $38.9 per square foot.

In November of last year, Breakthrough Properties landed a full-building tenant at an upcoming office campus in San Diego. Becton, Dickinson and Co., a medical tech company, signed a 220,000-square-foot prelease agreement for the facility, more than a year ahead of the project’s expected delivery.