Kearny Mesa multi-tenant office property sells for $4.8M

A 23,650-square-foot, multi-tenant office building in Kearny Mesa has been sold for $4.8 million, the real estate brokerage CBRE announced Tuesday.

The buyer was SAC Beginnings LLC, a local 1031 exchange buyer.

CBRE's Matt Pourcho, Anthony DeLorenzo and Nick Williams represented the seller, 9320 Chesapeake Drive LLC, in the transaction.

"Investor demand for well-located office assets with proven tenant retention remains strong, particularly in supply-constrained submarkets such as Kearny Mesa," said Pourcho, an executive vice president at CBRE, in a statement.

Located at 9320 Chesapeake Drive, the property was 92.7% occupied at the time of sale and is leased to nine tenants. Esgil Corp., which occupies 8,406 square feet, has maintained continuous occupancy at the property since 1989 and recently completed a significant renovation of its space.

"This property was tied up in one day from marketing to a 1031 exchange buyer we knew was in the market, and we also had multiple backup offers within a week," Pourcho said. "The property's long-term occupancy history, significant capital improvements and strategic location made it a compelling opportunity for investors seeking stable cash flow and future upside."

The building has undergone extensive capital improvements, including renovated restrooms, an updated lobby, new lighting, refreshed common-area flooring, exterior paint and landscaping enhancements.

Located in the heart of Kearny Mesa, the property benefits from access to Interstate 15, Interstate 805, State Route 163 and State Route 52, providing connectivity throughout the San Diego region.

According to CBRE Research, San Diego remains one of Southern California's most important innovation and employment centers, with Kearny Mesa serving as a centrally located business hub that benefits from regional connectivity and a diverse employer base.