Mission Valley Office Property Sells For $33M In Tight Market

The 140K SF 1450 Frazee office building in Mission Valley has traded for $33M. A joint venture between Hill Properties and a fund managed by DRA Advisors was the buyer, while the seller was an affiliate of Menlo Equities, which acquired the asset in 2010.

1450 Frazee is a seven-story property near California Route 163. The building is more than 90% leased to 27 tenants.

"Institutional investors were attracted to the quality of the rent roll combined and the asset’s location in San Diego’s largest submarket,” JLL Managing Director Bob Prendergast said. He brokered the deal along with colleagues Lynn LaChapelle and Sach Kirpalani.

Mission Valley is a tight submarket, JLL Q1 data shows. Total vacancy is 8.8%, compared to the metro San Diego marketwide rate of 12.6%. That is despite slight negative absorption in the market in Q1, adding a net of 26K SF.

Class-A office space in Mission Valley is likewise fairly tight at 8.6% vacant, JLL said. The overall San Diego vacancy rate for Class-A office space is 14%.

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