Sorrento Mesa’s Limited Supply Gives Buyers a Sense of Urgency

Sorrento Heights, a two-building office project comprising 92,875 square feet located at 9980 and 10020 Huennekens St. in San Diego, recently sold for $41.3 million. The buyer was Bioscience Properties Inc. and Harrison Street.

The property’s Sorrento Mesa location, situated at the confluence of San Diego’s surging life science and technology markets, offers an opportunity for near-term conversion or ground-up development to a life science campus.

Newmark’s Kevin Shannon, Brunson Howard, Paul Jones and Ken White represented the seller, a fund managed by DRA Advisors LLC in partnership with Cypress Office Properties.

“Sorrento Heights is uniquely positioned to benefit from exceedingly strong fundamentals in both the life science and technology sectors,” said Howard. “These two sectors are benefitting from record venture capital investment into the San Diego marketplace.”

Sorrento Heights includes two two-story office buildings totaling 92,875 square feet with 9980 Huennekens comprising 60,335 square feet and 10020 Huennekens measuring 32,540 square feet.

“The Sorrento Mesa life science and technology real estate market is extremely supply-constrained with very few sites remaining for future development,” adds Shannon. “A state-of-the-art life science building in Sorrento Mesa, dependent on use specifics, carries an estimated replacement cost of well over $1,000 per square foot.”