Dealmaker: American Assets Trust Acquires San Diego Office Asset for $525M

American Assets Trust, San Diego, acquired the La Jolla Commons office asset in San Diego’s University Town Center submarket for $525 million.

The real estate investment trust used cash on hand and its existing credit facility to pay for the acquisition, which also included an entitled development parcel and two parking structures.

IPE Real Assets reported JP Morgan Asset Management, New York, sold the Class A office towers. The two LEED platinum office towers at La Jolla Commons delivered in 2008 and 2014, respectively. One 421,000-square-foot tower is fully leased to credit-rated LPL Financial. The other tower, which totals 303,000 rentable square feet, is 72 percent leased to tenants including U.S. Bank National Association, Paul Hastings LLP and Finch, Thornton & Baird LLP.

La Jolla Commons is within walking distance of several retail and entertainment options and the Mid-Coast Trolley line, which will provide service to downtown San Diego starting in 2021.

American Assets Trust’s retail portfolio exceeds three million rentable square feet and its office portfolio now includes more than 3.4 million square feet. The company also owns one mixed-use property and more than 2,000 multifamily units.