A prime piece of Sorrento Valley real estate has been scooped up by Westcore Properties, which is still figuring out what to do with it.
The San Diego-based real estate investment company acquired about 6.6 acres of vacant land along Sorrento Valley Road at Industrial Court in a Caltrans auction for $11.6 million.
“The initial plan was to build a multitenant business park,” said Dean Asaro, a senior director of Cushman & Wakefield in San Diego.
Asaro represented Westcore in the transaction.
“We had so much interest in the site that we are now talking to various companies potentially to do a build to suit and can accommodate up to about 120,000 square feet of building,” Asaro said.
The land is zoned for light industrial, office or commercial use.
“What makes this site so valuable and unique is that it sits right in the middle of some of the most affluent neighborhoods there are in San Diego County — Rancho Santa Fe, Del Mar, Fairbanks Ranch, Carmel Valley and La Jolla to the south,” Asaro said.
The site also has easy access to Interstate 5, Interstate 805 and state Route 52.
“A lot of people who are running companies love the location,” Asaro said.
The property is also a rarity in a very tight submarket, where Asaro said vacancy was running at about 2 percent.
“I’ve never seen it that tight and it’s going to continue to stay tight,” Asaro said. “People want to be there but there’s not much available for lease and virtually nothing available for sale.”
There had been a handful of vintage industrial/office buildings on the site that were demolished by Caltrans before the land was put out for bid.
“They were pretty old, dysfunctional buildings,” Asaro said.
Once Westcore settles on what to do with the site, construction will likely take about a year with a target of completing it in late 2019 or early 2020.