Newmark[1]announces it has completed the sale of Chesapeake Corporate Center, a two-story, 59,175-square-foot, multi-tenant office building in San Diego, California. Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Brunson Howard, Paul Jones, Sean Fulp andKen White and Managing DirectorsRyan Plummer and Mark Schuessler represented the seller, Radius Investments, the investment arm of Radius Commercial Real Estate, a leading full-service commercial real estate brokerage based on California’s Central Coast. The buyer was The Sason Organization, a family-owned real estate investment firm based in New York City.
“Chesapeake Corporate Center represented the rare opportunity to acquire a high-quality, multi-tenant office project in one of the most sought-after submarkets in San Diego,” said Howard. “New ownership has the opportunity to add immediate value via an aggressive lease up strategy aided by the Kearny Mesa submarket which is transforming as a result of the community plan update.”
Located at 9555 Chesapeake Drive in San Diego, Chesapeake Corporate Center measures 59,175 square feet and is situated on a 3.24-acre parcel.The multi-tenant office building is served by three individual lobbies, stairwells and elevators and offers tenants ample on-site parking and a flexible design with the ability to accommodate tenants ranging in size from 3,000 to 27,500 square feet. Originally built in 1984, the property has undergone significant renovations totaling $2.8 million to date. At the time of sale, the property was 66% leased to four tenants: Cobham Advanced Electronic Solutions, The California Department of Health Care Services, The Packard Companies and Workiz Inc.
Chesapeake Corporate Center is located withinthe 8.0-million-square-foot Kearny Mesa submarket,which has continued to be one of the most highlysought after locations in San Diego County due toits central location and direct access to six majorinterstates and freeways including I-15, I-8, I-805, SR-52 andSR-163. It is home to a variety ofblue-chip aerospace and technology companies suchas General Atomics, Northrop Grumman and Cubic. Kearny Mesaalso hosts a wide range of industries includinghealthcare, education, energy and engineering.
Steady gains in rent growth and a decline in vacancy continued to reverse pandemic losses in the San Diego office market during the fourth quarter of 2021, according to Newmark Research. The absorption gains and leasing activity fueling San Diego’s recovery are being led chiefly by life science and technology companies. Although resurgent demand from these companies has not yet been enough to completely erase the increased vacancy caused by the pandemic, strong leasing activity seems to indicate that this positive trend will continue into next year.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies.Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
[1]Dba Newmark Knight Frank in California
