New York-based investor has acquired Chesapeake Corporate Center, a 59,175-square-foot office building in the Kearney Mesa neighborhood of San Diego. The acquisition is Sason's first in the San Diego market. A joint venture between Chesapeake Center LP and Brown Chesapeake LLC sold the property for an undisclosed sum.
Sason plans to rebrand the property as Canvas on Chesapeake, and the firm plans to invest $1.5 million to improve the property. The capital improvement plans include upgrades to the building's lobbies, the elevators, lighting and other mechanical systems and the installation of a new roof. Sason will also develop two new spec suites at the property.
Sason plans to target "forward-thinking companies who value design-forward indoor and outdoor workspaces and overall wellness" to occupy the property, according to Joshua Sason, a principal at the company. JLL's Richard Gonor and Tony Russell will lead leasing efforts at the property, which offers floor plates ranging from 17,000 square feet to 3,000 square feet.
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During the pandemic, the San Diego office market was buoyed by the strong presence of life science companies, but even still, the market saw increased vacancy and low demand for office space. That trend began to turn in late 2021. In the third quarter, the market posted 269,000 square feet of positive absorption, marking the second consecutive quarter of growth, according to a report from Colliers. Prior, San Diego had five consecutive quarters of negative absorption. The office leasing demand in the third quarter reached levels not seen since 2018 and 2019, and according to the report, it is a sign that the office market has turned a corner.
The recovery has helped to encourage office investment deals, like this one. In addition, a partnership between Ascentris and Harbor Associates sold The Pinnacle, a 110,000-square-foot class-A office building in the San Diego suburb of Rancho Bernardo. The sales price of the property was not disclosed. The partnership sold the property after completing a value-add business plan. The duo purchased the property in 2018 and made capital improvements, including upgrades to the outdoor common area patio, the lobby, the showers and locker rooms, and the addition of electric vehicle charging stations.
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Kelsi Maree Borland
