Newmark Completes Sale of Life Sciences Redevelopment Opportunity in San Diego, California

October 15, 2021 9:00 AM

Newmark[1] announces that it has completed the sale of Sorrento Heights, a 92,875 square foot two-building office project located at 9980 and 10020 Huennekens Street in San Diego, California, for $ 41.3 million. The facility’s location in Sorrento Mesa, located at the confluence of San Diego’s burgeoning life sciences and technology markets, provides an opportunity for short-term conversion or core development into a science campus of life at the cutting edge of technology.

Newmark’s U.S. Capital Markets Co-Head Kevin Shannon and Executive Managing Directors Brunson Howard, Paul Jones and Ken White represented the Seller, a fund managed by DRA Advisors LLC in partnership with Cypress Office Properties. The buyer was Bioscience Properties, Inc and Harrison Street.

“Sorrento Heights is uniquely positioned to benefit from extremely strong fundamentals in the life sciences and technology sectors,” said Howard. “These two sectors are benefiting from a record venture capital investment in the San Diego market.”

Sorrento Heights comprises two two-story office buildings totaling 92,875 square feet. 9980 Huennekens Street is 60,335 square feet and 10020 Huennekens Street is 32,540 square feet. The project is located on four contiguous parcels totaling 5.23 acres. An open covered walkway and outdoor seating area join the two buildings, which offer a large parking ratio of 4.6 / 1000 square feet. The property is 68% available as the largest tenant in the project has put the entire 10020 Huennekens Street building on the market for subletting. This offers the new owner solid prospects for retraining or reorganizing the life sciences.

Shannon added, “Sorrento Mesa’s life science and technology real estate market is extremely limited in terms of supply and there are very few sites left for future development. replacement cost estimated at over $ 1,000 per square foot. “

According to a report by Newmark Research, the San Diego life science market is one of the most established life science clusters in the country. Along with Boston and San Francisco, San Diego is a major epicenter of life science activity. The three markets combined have approximately 16.6 million square feet of lab space under construction and renovation, with an additional 54.5 million square feet on offer. San Diego ranks third in the report’s Exclusive Life Sciences Index, which ranks groups based on factors such as market maturity, market dynamics, demographics and structural components supporting Life Sciences and the potential for future growth.

[1] dba Newmark Knight Frank in California

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), along with its subsidiaries (“Newmark”), is a global leader in commercial real estate, seamlessly fueling every phase of the property lifecycle. Newmark’s full suite of services and products are uniquely tailored to suit every client, from owners to occupants, investors to founders, and startups to blue chip businesses. Combining the platform’s global reach with market intelligence in established and emerging real estate markets, Newmark provides superior service to clients across the industry. Newmark generated revenues of over $ 2.2 billion for the twelve months ending June 30, 2021. The offices owned by the Newmark company, as well as its business partners, operate from more than 160 offices with approximately 6,200 professionals worldwide. To learn more, visit or follow @newbrand.

Discussion of forward-looking statements regarding Newmark
Statements contained in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements regarding the effects of the COVID-19 pandemic on the business, results, financial condition, liquidity and prospects of the Company, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, perhaps materially, from what is currently expected. Except as required by law, Newmark assumes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in forward-looking statements, see Newmark’s Securities and Exchange Commission documents, including, but not limited to, the risk factors and the special note on Forward-looking information set out in these documents and any updates to these risk factors and the special note on forward-looking information contained in subsequent reports on Form 10-K, Form 10- Q or Form 8-K.

About Eleanor Blackburn

Check Also

Saint-Louis seeks to increase its population with Afghan refugees

ST. LOUIS (AP) — Inamullah Niazai sits on the porch step of his red brick …

Leave a Reply

Your email address will not be published.