10505 Sorrento Valley Rd - Office FOR SALE


San Diego, CA 92121- University City
$12,400,000 USD
858-527-2727
10505 Sorrento Valley Rd, San Diego, CA for Sale
$12,400,000 USD
Office - FOR SALE
1/11
null | Request Cap Rate

10505 Sorrento Valley Rd
San Diego, CA 92121
University City


HIGHLIGHTS

  • San Diego’s Fortune 500 “Main & Main” Location
  • Potential Life Science Conversion | HEART OF THE NATION'S THIRD-LARGEST LIFE SCIENCE CLUSTER
  • Fortune 500 "Main & Main" Location
  • I-805 Freeway Signage and Sorrento Valley Coaster Access
  • One of the Last True Office Buildings in the Submarket

OVERVIEW

San Diego’s Fortune 500 “Main & Main” Location HEART OF THE NATION'S THIRD-LARGEST LIFE SCIENCE CLUSTER * UCSD, Qualcomm’s corporate headquarters, General Atomics, Dexcom, Globus Medical, Google, Amazon, Apple, and ServiceNow are all within a 5-minute radius. This employment concentration generates sustained organic demand from professional services, medical, and administrative users seeking a Sorrento Valley address to serve the surrounding workforce. I-805 FREEWAY SIGNAGE AND SORRENTO VALLEY COASTER ACCESS * The property commands rare 805 freeway building signage capturing over 210,000 cars per day on one of San Diego’s busiest corridors, alongside monument and building signage on Sorrento Valley Road. The Sorrento Valley Coaster commuter rail station lies 0.6 miles away — transit proximity increasingly valued by employers competing for talent across the San Diego innovation economy. NEWLY UPGRADED INFRASTRUCTURE REMOVES NEAR-TERM CapEx RISK * A new 120-ton BAC cooling tower installed Q4 2024 anchors an updated HVAC system of 51 water source heat pumps and 10 split systems, substantially reducing deferred maintenance exposure for a new owner. The 1,200-amp, 3-phase electrical service and IL-3-1 zoning — San Diego’s most flexible — support office, medical, life science, R&D, and manufacturing uses without further entitlement. Own Your Space — The Case For Buying Over Leasing IN-PLACE TENANTS SUBSIDIZE YOUR MORTGAGE FROM DAY ONE * Nine tenants — including T-Mobile — across 27,711 SF generate $805,689 in Year 1 gross revenue, immediately offsetting the majority of the $846,465 annual loan payment before the owner-user occupies a single square foot. After accounting for 3rd-party income, interest deductions, and depreciation, the building produces a net after-tax savings of $62,000 per month in Year 1 — versus a $35,527 per month cost to lease equivalent space, a swing of $97,527 per month, or $1.17M annually. OWN FOR $1.35M DOWN — SAVE $2.17M OVER 10 YEARS * With SBA 504 or conventional financing at 90% LTV, total equity required to own is $1,240,000. Over 10 years, ownership generates $2,166,428 in cumulative after-tax savings versus leasing — meaning the building effectively returns the entire down payment plus a premium, excluding any appreciation. A lease alternative produces zero residual value on the same equity.

FOR SALE DETAILS

PRICE

$12,400,000 USD

PRICE/SF

$225 USD /SF

CAP RATE

Request Cap Rate

% LEASED

-

TENANCY

Multiple

SALE TYPE

Owner User

BUILDING DETAILS

PROPERTY TYPE

Office

TOTAL BUILDING SIZE

-

STORIES

4

BUILDING CLASS

B

YEAR BUILT

1982

SPRINKLERS

-

PARKING SPACES

167

LAND DETAILS

LAND ACRES

2.07 AC

LAND SF

90,169 SF

ZONING

IL-3-1

APN/PARCEL ID

340-081-04

ASK ABOUT THIS PROPERTY

Matt PourchoCBRE, Inc.More Info
858-527-2727

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.

Matt PourchoCBRE, Inc.More Info
858-527-2727

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.