Dollinger Pays $31M for San Diego Life Science Portfolio

Dollinger Properties has acquired a 90,000-square-foot R&D and lab portfolio in Rancho Bernardo in San Diego, Calif., for $30.8 million. Montana Avenue Capital Partners sold the two properties. JLL represented the seller in the transaction and procured the buyer.

The assets last traded in 2021 as part of a larger $45.5 million portfolio transaction, according to CommercialEdge data. In the same year, they became subject to a $20.5 million loan from Wells Fargo Bank and a $7.1 million note from Mesa West Capital, the same source shows.

The two buildings are 11501 Rancho Bernardo Blvd. and 16981 Via Tazon. They were fully occupied at the time of the sale. Tenant Millennium Health is part of the roster, the company having owned the assets between 2010 and 2021, according to CommercialEdge data. The adjacent buildings are off Interstate 15 and roughly 24 miles from downtown San Diego.

JLL Managing Directors Bob Prendergast and Lynn LaChapelle, along with Vice President Greg Moore and Market Lead Tim Olson led the Capital Markets team that brokered the transaction.

San Diego transactions drop by two thirds

Throughout all of 2023, more than 2 million square feet of office space traded across 23 properties in San Diego, for a total of $642.8 million, according to CommercialEdge data. These figures represent a tremendous drop from the previous year, when more than triple the square footage changed hands for an investment volume of nearly $2.4 billion.

One of the largest recent transactions in the metro was Tishman Speyer partnering with Bellco Capital to acquire a 65 percent stake in a $236 million life sciences development. Tenant Turning Point Therapeutics, a subsidiary of Bristol-Myers Squibb Co., is fully leasing the property, committing to the space through 2035.