SAN DIEGO –– CBRE arranged the sale of a 28,700-sq.-ft. office and medical building in Chula Vista for $8.8 million, or $318 per square foot, to an out-of-town private investor. CBRE’s Matt Pourcho, Anthony DeLorenzo, Matt Harris, Chris Williams and Ramin Salehi represented the seller, Coseo Properties Inc.
“We continue to see phenomenal interest in stabilized office properties in San Diego, especially among non-local investors,” said Pourcho. “Within a few weeks of marketing, we received nine offers and ultimately secured a fantastic buyer located outside of the metro.”
Built in 1979, the two-story building is located at 690 Otay Lakes Road and was renovated in 2016 and 2021. Recent renovations include upgrades to the building and common areas. The building features a landscaped entryway, flexible suites ranging from 818 square feet to 4,380 square feet, 11-foot-high ceilings, generous glass lines, ample natural light and expansive views. It sits on a 2.97-acre lot with 154 parking spaces.
The building was fully occupied at the time of sale by New American Funding, Life Residential, Eastlake Rejuvenation and Wellness Center, Excel Speech Therapy Center, Boursa Investments and Edward Jones.
690 Otay Lakes is in the heart of Chula Vista, between Interstate 805 and State Road 125 and one mile south of Highway 54, providing quick access to Eastern and downtown San Diego. The property is 3.5 miles away from the Chula Vista Bayfront Development, a 535-acre joint redevelopment project, and directly adjacent to a 125,000-sq.-ft. retail power center with a variety of restaurants and national retailers. Its location off Otay Lakes Road also provides high visibility on a heavily trafficked street that sees more than 30,000 cars per day.
Office vacancy rates in South San Diego decreased to 4.3 percent in the second quarter of 2022, according to CBRE Research. The submarket also recorded 4,575 square feet of positive net absorption in the quarter with the asking lease rate at $2.84.