The Rare SD Office-Portfolio Sale

Kenney: “You have such distinct submarkets. If you bought a portfolio in Sorrento Mesa, suddenly you have a lot of exposure to Sorrento Mesa, and that could scare off some people from aggregating.”

SAN DIEGO—It’s difficult to put together a homogenous group of properties in a market with such distinctly different submarkets and product types, which makes the Casey Brown Co.‘s recent purchase so unique, principal John Kenney tells GlobeSt.com. The firm acquired a three-property office portfolio from Peregrine Realty Properties for $76.95 million, a rare transaction for this market.

The office portfolio totals 328,943 square feet with properties located in the Kearny Mesa, Mission Valley and Old Town submarkets of Central San Diego. Louay Alsadek and Hunter Rowe of CBRE represented the seller on Chesapeake Park Plaza, a 92,321-square-foot, glass-lined building at 9665 Chesapeake Dr. in the Kearny Mesa submarket, leased primarily to engineering, consulting, law, technology and real estate firms; and Valley Corporate Center, a 12-story, 176,132-square-foot office tower located at 591 Camino De La Reina in Mission Valley, leased to law firms, financial and insurance-services companies, technology and defense contractors, medical and health-service providers, as well as government entities. Josh Buchholz, Doug Ceresia and Matt Midura of NAI San Diego represented the seller on Old Town Plaza, a two-building, 60,490-square-foot creative-office project at 2251 San Diego Ave. in Old Town, leased to marketing, design and consulting firms as well as healthcare providers.