Falcon Real Estate Acquires University Pacific Centre for $42 Million
Falcon Real Estate has acquired University Pacific Centre, a four-story 96,581-square-foot office building located in the University Towne Center (UTC) submarket of San Diego, Calif. Falcon purchased the Class A building for $42 million on behalf of an overseas private investor through a 1031 tax deferred exchange. Falcon will be the supervisory asset manager of the property.
Built in 1987, University Pacific Centre is currently 87 percent leased to a wide range of tenants including Pharmaceutical Research Associates (PRA), EpiCept Corporation and the Merrill Corporation. The building has a generous parking ratio of four spaces per 1,000 s.f. with two levels of underground parking, extensive landscaping with sculptures and water features and the availability of freeway-visible building signage.
University Pacific Centre also has a strategic location within the UTC submarket. The property is located directly across the street from the luxurious 419-room Hyatt Regency Hotel of La Jolla, The Sporting Club fitness center and several high-end restaurants. The University of California at San Diego (UCSD) is across Interstate 5 from University Pacific Centre and San Diego International Airport is approximately a 15 to 20 minute drive from the building as is Downtown San Diego.
“San Diego is among the most sought after commercial real estate investment markets in the United States,” said Falcon Executive Vice President, Scott Sweeney. “University Pacific Centre has a premier location within the prestigious UTC office submarket, and the most generous parking ratio in the UTC submarket, making this a very stable investment,” he added.
“Falcon views this property as a secure long-term hold,” Sweeney added. “We plan to address the existing vacancies and also review upcoming lease expirations as an opportunity to increase cash flow by bringing below-market rental rates to market levels. Plans also call for upgrading some of the systems in the building and additional improvements to increase occupancy and maintain the building’s status as a high-end office property.”