Voit Real Estate Services EVP Randy LaChance and SVP Brandon Keith directed the $17-million sale of a 54,000-square-foot, two-story office building located at 9573 and 9577 Chesapeake Dr. in San Diego’s Kearny Mesa submarket. The fully leased office building sold for $315 per square foot, representing a first-year cap rate of 8.5% and the highest per-square-foot price in Kearny Mesa since 2019 for a pure-play office property of more than 20,000 square feet.

LaChance and Keith represented both the seller, Provident Chesapeake, LLC, and the buyer, Los Angeles-based Dyer 18, LLC, which sought a 1031 exchange opportunity with a good return.

Keith said, “The office investment sales market has been quite difficult due to the rapid increase in interest rates over the last two years and the ongoing bad publicity nationwide related to office product. Finding a lender willing to fund office investments is challenging. Identifying an investment buyer willing to consider a building with only three years remaining on the tenant’s lease term added to the already arduous task.”

Be there in person for the 8th Annual Connect Los Angeles 2024, May 1 at the Intercontinental Los Angeles Downtown. Industry leading experts will share insights and forecasts on today’s CRE markets.