A recently renovated office building in San Diego’s Mission Valley submarket has been placed on the market, offering a future investor the chance to acquire 94,881 square feet of office space. According to the listing by CBRE, the property is being offered at $24.7 million, or about $260 per square foot.
The property is located at 3838 Camino Del Rio on more than five acres of land, and was initially built in 1981. Property records show that the asset was purchased in 2017 by HighBrook Investors for $14.7 million, or nearly $155 per square foot, later renovating it in 2020.
“This well stabilized property went through an extensive $3 million dollar [renovation] and sits adjacent to the new San Diego State University West Campus encompassing over 1.6M SF of mixed use commercial and a new 35,000 seat stadium. The property performed extremely well through the recent pandemic and offers a new owner cash-flow stability and a well balanced rent roll,” Matt Pourcho, senior vice president with CBRE, said in an email to The Registry.
According to CBRE, the property is about 97 percent occupied by a diverse tenant roster. Current tenants include Edward Jones, Pacific Realty Advisors, Pearson, Michael Sullivan & Associates, Sorenson Communication, Inc. as well as several others. The listing also shows that the largest tenants make up for just 10.8 percent of the property and provide added flexibility through its balanced rent roll.
The property is situated overlooking the San Diego River at the junction of Interstates 15 and 8, which see about 200,000 vehicles per day. Additionally, the property has access to over 5.3 million square feet of retail amenities nearby, including a 24 Hour Fitness, Costco, In N Out and more.
In general, Class B office space similar to the one listed have continued to be in higher demand in Mission Valley. According to CBRE, there has been a limited supply of Class B blocks, with only one large project having contiguous available space that is 50,000 square feet or greater.
