By Jack Stubbs
After it was purchased several years ago, a property in Chula Vista has been placed back on the market. The Plaza at Eastlake, a 132,669 square foot office/medical building in Chula Vista’s master-planned Eastlake community, is marketed for $36.21 million, or just under $273 per square foot. The Eastlake Business Park is home to a variety of commercial and retail tenants, and is located just north of the Village Center.
Located at 2300 Boswell Road in the Eastlake Business Park, the Class A property is marketed by CBRE on behalf of its owner, Harbor Associates. Public property records show that an entity affiliated with the firm acquired the site in 2018 for $18 million, or about $135 per square foot.
The two-story building was originally constructed in 1992 and underwent a $2.24 million renovation in 2020, which included lobby upgrades, new landscaping and various entrance upgrades.
“This ‘Best of Breed’ Class A building is the only office building in the Eastlake area to offer its tenants exclusive access to a fully equipped conference room, which includes television access, a multimedia console, and easily reconfigurable furniture for meetings and trainings. The building’s 14-foot deck to deck slab allows an owner to offer open ceiling creative office improvements,” the listing from CBRE states.
From a leasing perspective, the Plaza at Eastlake is home to a number of credit tenants with an above-average five-year weighted average lease term. Some of these tenants include San Diego Regional Center, San Diego Credit Union, US Naval Clinic, California Medical Behavioral Health and Coldwell Banker.
The strength of the property’s tenants could make Plaza at Eastlake a good choice for those looking to invest in the San Diego submarket, according to Matt Pourcho, executive vice president at CBRE’s San Diego office.
“[The property has] strong leasing activity in a strong submarket with only a 6.8 percent office vacancy rate. Most other submarkets within San Diego County average over 10 percent office vacancy rates,” Pourcho stated in an email to The Registry. “The quality of product and surrounding demographics really make this property excel. It’s also marketed with a high cap rate of 7.5 percent to incentivize buyer’s to move quickly.”
Plaza at Eastlake services approximately one million residents within a 10-mile radius. Plaza at Eastlake is within walking distance of four of the largest retail centers in Eastlake that offer a variety of eateries and retail services. With over 1.2 million square feet of retail, the property is proximate to major national retailers such as Sprout’s, Trader Joe’s, CVS, Target, Lowe’s, Office Depot and TJ Maxx. It is also directly adjacent to Scobee Park, a seven-acre private park and recreation area.
Looking ahead, significant demand in the Eastlake submarket is expected to continue.
“With no new planned construction and strong demand, supply is expected to remain constrained for the foreseeable future. In the last 12 months the average asking rate in South San Diego has increased by 5.3 percent,” the listing states.
