All but two of the properties are in the University Towne Centre, or UTC, submarket. The other buildings are in Mission Valley and Carmel Valley. The largest asset in the portfolio is the Plaza at La Jolla Village, a six-building, 825,000-square-foot campus with three granite office towers and three garden-style buildings. "With the Blackstone deal, they know there aren't that many properties available. As a result, they're selling now to extract the value. People like The Irvine Co. are buying to get in now before the prices go higher," said Delores Conway, director for the Casden Forecast at University of Southern California Lusk Center for Real Estate. "Office vacancy rates everywhere in Southern California have been 10 percent or less," Conway said. "So, office space is tight and it's because business has kicked in. Businesses are hiring and leasing office space and expanding."
March 5, 2007