Parallel Capital Partners Expands Industrial Holdings in San Diego
In a notable move within the San Diego real estate market, Parallel Capital Partners has made a substantial investment in industrial properties, following their initial acquisition just six months earlier. This strategic expansion was recently highlighted with the purchase of the Rose Canyon Business Park.
Major Acquisition Details
On April 1, Parallel Capital Partners acquired the Rose Canyon Business Park for $67 million. This expansive complex comprises 234,000 square feet spread over 15 buildings, located at 4901 – 4907 Morena Boulevard. According to property records, the transaction was made with Vertical Ventures, a firm based in Walnut Creek, California. The property is currently 85 percent leased.
Planned Renovations and Upgrades
Parallel has earmarked an additional $5 million for renovations aimed at improving the site’s appeal and functionality. The proposed enhancements include:
- Exterior upgrades
- Signage improvements
- Landscaping enhancements
- A new spec suite program
Furthermore, the company plans to convert approximately 13,000 square feet of office space within the park for industrial use.
Existing Tenants
The Rose Canyon Business Park hosts several established businesses, including:
- The Rock Movers
- Paulson Air Conditioning
- Lumina Builders
These tenants occupy an average space of 1,700 square feet each, contributing to the property’s operational stability.
Previous Acquisition in San Diego
This recent acquisition follows Parallel’s purchase of the 5 & 52 Business Park in November for $14.5 million. This smaller complex, located at 5965 and 5975 Santa Fe Street, is situated just north of the Rose Canyon Business Park.
The firm plans to reposition this site as well, subdividing the properties into smaller, move-in-ready spaces and enhancing its exterior and landscaping.
Market Strategy Statement
Matt Root, the co-founder and CEO of Parallel Capital Partners, expressed optimism about the firm’s strategy, stating, “We believe the current dislocation in the capital markets has created a rare window to acquire high-quality assets at compelling values, and we are excited to reposition these properties to meet the growing demand for modern, small bay industrial space in San Diego.”
Investment Focus
Parallel’s investment approach prioritizes small bay industrial assets, distinguishing it from larger big-box warehouses which dominate much of Southern California. This strategy is similar to that practiced by leading firms in the sector, such as Rexford Industrial Realty.
Contact Information
For more information, you may reach Nick Trombola at nt*******@****************er.com.