San Diego CA— CBRE announced that a high-net-worth, 1031-exchange buyer purchased an office building in Sorrento Mesa, San Diego for $14.6 million.
CBRE’s Matt Pourcho, Louay Alsadek, Hunter Rowe, Anthony DeLorenzo, Gary Stache, Doug Mack and Bryan Johnson represented the seller, Swift Real Estate Partners in the transaction.
Located at 5405 Morehouse Drive, the three-story, 51,589 square-foot building was originally built in 1988. The property, which also includes a covered parking structure, features suites with an average size of approximately 2,800 square feet.
The property is adjacent to Sorrento Court, a popular retail center that serves the hundreds of businesses in Sorrento Mesa. The building is one block from I-805, a major San Diego freeway that connects Sorrento Mesa to the rest of San Diego County. Westfield UTC, a popular shopping mall in the area, is less than three miles from the site.
“This asset is well-located in the thriving Sorrento Mesa market, which features San Diego’s highest concentration of Fortune 500 companies,” said Pourcho. “Sorrento Mesa continues to receive overflow tenants from the adjacent UTC market, which is now 2.3 percent vacant, with 31 percent higher rents than this property. The location of this site is ideal for tenants due to its quality, nearby retail and immediate freeway access.”
The overall asking rate for office space in San Diego increased for the ninth consecutive quarter to $3.17, the highest asking rate this cycle according to CBRE’s fourth-quarter report. Total vacancy dropped 30 basis points quarter-over-quarter to 10.3 percent in the quarter, 20 basis points above the previous year. Central San Diego’s overall office fundamentals remain very healthy as 30 of the 39 past quarters showed positive net absorption.