A recently renovated office building in La Jolla has hit the market with an asking price of $18.7 million, or approximately $540.31 per square foot. According to an offering memorandum obtained by The Registry, the building, referred to as The Ivanhoe, is 95 percent occupied by multiple tenants.
Located at 7817 Ivanhoe Avenue on 0.4 acres of land, the 34,702 square-foot office building was built in 1983 and features three stories of office space as well as an underground parking structure. In 2015, the building underwent a $1.5 million renovation by its current owner, Capstone Advisors, which included new paint, signage, remodeling of office suites, flooring, lighting and more. According to public records, the Carlsbad-based real estate investment company has owned the building since 2014.
According to the property’s website, the building is mostly occupied, with one vacancy on the second floor. The Ivanhoe is home to multiple tenants, including international real estate firm, Keller Williams. However, suite 206 is currently available for lease, offering 1,582 square feet of office space.
Currently, the property’s net operating income is just over $1 million, with a first-year cap rate of 5.34 percent, according to the offering memorandum.
“The boutique Class A office project offers investors the rare opportunity to acquire a one-of-a-kind coastal asset in the seaside community. Completed in 1983 and recently renovated, the 34,702 square-foot project is 95% leased to a diverse tenant roster. The distinct architectural design and prominent positioning within walking distance to world-class retail, dining, entertainment, and executive housing make The Ivanhoe a highly coveted opportunity,” the offering memorandum states.
Located along Ivanhoe Avenue, the property is strategically placed near Interstate-5 and State Road 55, providing tenants with easy commutes in and out of La Jolla. The property is also in close proximity to various retail and dining options and nearby tourist attractions, including La Jolla Cove. Downtown San Diego is also just 12 miles from the property.
According to the offering memorandum, the property’s prime location near the coast gives potential buyers a competitive advantage, with nearby sales ranging from $700 to $1,000 per square foot. In general, the area is home to a large and affluent population, with an average household income of $183,181 per year.
The property is being listed by CBRE, which did not respond in time to comment.