San Diego Commercial Real Estate Wrap-Up – May 2020

Sorrento Tech. Image courtesy of Devin Muna

San Diego’s commercial real estate sectors had measurable activity in May as the California economy began to reopen, primarily in investment transactions. The city’s position as a major life sciences hub could prove a boon to its commercial real estate. Several key deals involved either research facilities or medical office properties. Read our May list of San Diego must-knows: 

1. DEAL – BLT Enterprises sells Sorrento Valley R&D office campus.

Longfellow Real Estate Partners acquired the three-building, 93,480-square-foot Sorrento Tech for $39 million. The buildings, located at 10070, 10140, and 10180 Barnes Canyon Road, came online between 1984 and 1985. BLT had acquired the properties in 2016 for $18.3 million. The campus’ tenants include CV Sciences, L3 Technologies and TorreyCove Capital Partners. 

2. DEAL – Downtown retail condo trades for $22 million.

The 43,000-square-foot unit, fully occupied by an Albertsons grocery store, sold in a 1031 exchange. Marcus & Millichap affiliate The Mansour Group closed the deal. The condominium, located at 655 14th St., is on the ground floor of Equity Residential’s 229-unit Market Street Village Apartments, half a mile northeast of Petco Park.

3. DEAL – JLL arranges Qualcomm lease renewal in Sorrento Mesa.

The landlord, La Jolla Management, agreed to the 143,979-square-foot deal encompassing the entire Sorrento Corporate Center at 9940 and 9950 Barnes Canyon Road. JLL worked on behalf of the owner, and Cushman & Wakefield represented the tenant. The Class B, two-story property opened its doors in 1985.

4. PEOPLE – CBRE names associate property management director.

The firm promoted Lesley Hudson from the role of senior manager. She had joined the company in 2009, previously overseeing operations at a large retail property in the metro. Hudson has a bachelor’s degree in business administration from the University of Nevada in Reno and a master’s degree in real estate from the University of San Diego.

5. DEAL – Medical office building changes hands for $6 million.

Olios Health, a pain management group, purchased the 25,600-square-foot asset from a private investor. First Citizens Bank provided $5.1 million in acquisition financing. CBRE represented the seller. The property was built in 1991 and is located at 3434 Midway Drive, next to Kaiser Permanente’s Point Loma facility.

6. DEAL – North Park retail asset trades for $28 million.

CBRE represented the buyer, a private investor, in the 1031 exchange. Vons occupies the entire 44,000-square-foot building under a lease terminating in 2039. Located at 4145 30th St., the asset is just off Interstate 805 and within two blocks of the El Cajon Boulevard retail corridor.