City Office REIT has sold its holdings in the Sorrento Mesa submarket of San Diego for $576 million. The new owner(s) were not disclosed.
"We are pleased to announce the closing of our Sorrento Mesa life science portfolio, which locked in a gain on sale of over $425 million," commented James Farrar, the company's CEO. "We are positioned to redeploy these funds into premier office properties across some of the best markets in the country. We are currently advancing three separate acquisitions in Dallas, Phoenix and Raleigh with an aggregate gross purchase price of approximately $613.5 million. Should we be successful in closing these transactions, they will enhance our portfolio, significantly increase our earnings per share and generate predictable, long-term cash flow for our investors."
The high-priced sale in the submarket follows Longfellow Real Estate Partners’ $315 million acquisition