• Bisnow

Investors Eager For More Properties In Sorrento Mesa

Sorrento Mesa, already a hot submarket as an epicenter of tech in greater San Diego, continues to attract investors. Two separate deals were inked in the first week of February.

Waples Industrial Centre

Salt Lake City-based Bridge Investment Group has acquired the 97K SF Cornerstone Plaza office property in Sorrento Mesa for an unspecified price, and Newport Beach-based BKM Capital Partners bought a 99K SF industrial/flex portfolio totaling four buildings, two of which are in Sorrento Mesa, forming the Waples Industrial Centre (the other two buildings are in Carlsbad).

These investors are hardly alone in their interest in Sorrento Mesa. In December, TH Real Estate acquired The Yard in Sorrento Mesa, a repurposed creative office building, for about $24.8M.

In October, Crown Realty & Development acquired the 62K SF Oberlin in Sorrento Mesa for $20.4M.

In late 2017, a JV of Goldman Sachs Asset Management Private Real Estate and Montana Avenue Capital Partners acquired Centerpark Plaza, a 204K SF campus with eight flex industrial buildings and one office building in Sorrento Mesa.

Cushman & Wakefield's Tech Cities 2.0 report last year recognized the submarket for its tech and life sciences clusters. Sorrento Mesa landlords have capitalized on the trend, with buildings that are flexible for biotech or traditional office tenants. “With no speculative development underway in Sorrento Mesa, we anticipate the submarket will continue to tighten, and Cornerstone Plaza will be a top choice for tenants who seek to take advantage of the area’s deep labor pool,” said David McCleve, director of acquisitions for Bridge Investment Group's Bridge Office Fund Manager.

Bridge plans to invest $5.2M for capital improvements in Cornerstone Plaza's two- and three-story buildings to make the layout and design more amenable to contemporary office tenants, as well as add move-in-ready spec suites of between 3K SF and 5K SF.

Originally built in 1986, Cornerstone Plaza is 68% occupied. Bridge will also undertake cosmetic renovations to its corridors, common areas, outdoor courtyards, lobby area and entrances.

"Sorrento Mesa, a premier tech market, has undergone rapid expansion over the last few years," Cushman & Wakefield's Mark Avilla said. "The market will continue to be positioned for long-term commercial growth."

Along with colleagues Justin Halenza and Michael Mahoney, Avilla represented the seller, 3G Properties, in the $16.5M trade of Waples Industrial Centre and the Carlsbad properties. Waples was developed in 1988 and consists of 35K SF in two low-rise industrial/flex buildings on 1 acre.

Recent Posts
Follow Us
  • facebook
  • linkedin

California // Colorado // Arizona // Washington // Nevada // Oregon


Phone: 949.566.8800

  • linkedin
  • twitter
  • Facebook
  • instagram

© 2013-2021 BKM Capital Partners. BKM Capital Partners is a registered trademark. All Rights Reserved.



Headquartered in Newport Beach, California, BKM Capital Partners is a real estate fund manager specializing in the acquisition and improvement of value-add multi-tenant industrial properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and leasing to reposition and institutionalize light industrial assets, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. 

Learn more about BKM Capital Partners »



BKM Management Company manages a portfolio of 8.6 million square feet of multi-tenant industrial properties for BKM Capital Partner’s private and institutional investors. With a focus on “boots on the ground” execution at the property level, BKM has in-house capabilities for both property management and leasing. The teams at the property level are focused on ensuring the tenants thrive and that the properties are managed in the most efficient way.




Learn more about BKM Management Company »