100% Leased Property Considered One of Kearny Mesa’s Finest Class A Office Assets
SAN DIEGO, Calif., February 28, 2019 – Cushman & Wakefield announced today that Mesa View Plaza, a 111,268-square-foot Class A mid-rise office building in Kearny Mesa (San Diego), California has sold for $39.1 million. A joint venture between San Diego-based Coast Income Properties and Washington Capital Management, Inc. acquired the five-story, multi-tenant building from Stockbridge. Rick Reeder and Brad Tecca of Cushman & Wakefield’s Capital Markets group in San Diego represented the seller.
Tecca, Executive Director, said, “Mesa View Plaza is well-known as one of the finest Class A, multi-tenant office buildings in central San Diego. This acquisition will provide stable in-place cash flow and the ability to capitalize on rising rental rates in a submarket where the vacancy rate will decline to under 3% by the end of Q2 2019. Strong and improving leasing fundamentals, including declining vacancy rates and strong tenant demand throughout all of San Diego County, is attracting new and returning capital to the market where pricing levels are a relative discount to all other major west coast markets.
Mesa View Plaza was 100% leased at the time of sale to a strong mix of professional services and tech companies, but with the anticipation of being 91% leased within a short time following the sale.
Reeder, Executive Managing Director, added, “Capitalizing on its position as one of Kearny Mesa’s best located and highest quality Class A office buildings, Mesa View Plaza has enjoyed historically high occupancy levels through all real estate market cycles as well as market leading rental rates. This asset represented one of San Diego’s most exciting investment opportunities.”
Located at 9350 Waxie Way, Mesa View Plaza is situated on 9.87 acres and features efficient floor plates and a well-appointed lobby, tenant balconies, and subterranean parking with direct building access. The building also provides direct access and visibility to Highway 52, San Diego’s main east/west arterial linking coastal and inland residential communities. Designed by famed architect Brian Paul & Associates and completed in 2003, Mesa View Plaza is considered one of suburban San Diego’s finest Class A multi-tenant office buildings.
According to Cushman & Wakefield’s latest office market report, Kearny Mesa had a single-digit direct office vacancy of 9.4% as of year-end 2018, posting below both the Central County as well as San Diego Countywide direct averages, both at 11.4% overall.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
Stockbridge (www.stockbridge.com) is a real estate investment management firm headquartered in San Francisco, California, with offices in Atlanta, Chicago and New York. The firm’s portfolio is comprised of assets across the risk spectrum, spanning all major property types throughout the United States. As of December 31, 2018, the firm’s total assets under management were $13.3 billion.
About Coast Properties, Inc.
Coast Income Properties, Inc. is a San Diego, California-based real estate development company that specializes in developing, acquiring, and managing premier real estate projects in Southern California.
About Washington Capital Management, Inc.
Washington Capital Management, Inc. (WaCap) is an employee owned investment advisory firm founded in 1977. WaCap headquarters are located in Seattle, Washington, with branch offices in Portland, Boston, Spokane, Southern California and Northern California. WaCap manages assets in real estate equity, real estate debt, fixed income and equity strategies; primarily for institutional clients. WaCap provides a diverse menu of investment products, including equity real estate investments, commercial mortgages, and construction loans. Visit www.wcmadvisors.com.