San Diego's Procopio Tower Sold for $122M

LaSalle Investment Management, an independent subsidiary of Jones Lang LaSalle, has purchased the Procopio Tower in San Diego's B Street Corridor for $122 million from a venture of Hines US Core Office Fund and Sumitomo Life. Formerly known as Golden Eagle Plaza or the Union Bank Building, Hines acquired the 449,184-square foot, 22-story Class A office building and attached six-story garage in 2005 on behalf of its U.S. Office Core Fund for $116.3 million. Full terms and representation for this month's deal have not yet been disclosed; it was marketed for sale by October of 2015.

Hines Vice President Paul Twardowski has said of the Class A office building in the heart of downtown San Diego, “The business story this building tells is a compelling one for tenants, owners and investors alike: older buildings can be rehabilitated to Class A quality by applying best engineering practices and through modest investment in more sustainable building infrastructure.”

Designed by Langdon and Wilson, 525 B Street was originally constructed in 1969 and renovated in 1998 (designed and developed by Mark Krukiel in collaboration with RTKL Los Angeles) and again in 2007. The property underwent numerous sustainability measures and capital improvements spearheaded by Hines, including a new cooling tower, new efficient transformers, and upgraded building control systems, earning the property a Gold LEED rating. While vacancy rates were not released, the building only show three office spaces currently available, with major tenants include Procopio, Elsevier Inc., and Barrister Executive Suites.

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