McCarthy's Sorrento Mesa Gamble Pays Off With Verizon Deal

The 213k SF Enclave Sorrento has scored a 110k SF pre-lease with Verizon, which will allow the communications giant to consolidate its more than 600-employee roster from various San Diego locations into the tech campus.

The two-building campus is owned in a JV of McCarthy Cook and AllianceBernstein. McCarthy Cook's Brian Harnetiaux (here with his family) says the developer took a chance on investing in a Class-B project for upgrade to Class-A since its location was in the heart of San Diego's tech cluster. And the gamble could be paying off: As a Class-B property, Enclave Sorrento would command about $1.50/SF in rents. Average Class-A properties in the area exceed that by more than $1/SF, according to Brian and other experts during a recent CREW San Diego event.

The owners put $38M into renovating the project at 9808 and 9868 Scranton Rd, including building a new five-story parking structure, a café and tenant lounge, and a fitness/yoga center with locker rooms. JLL's Chad Urie, Tony Russell and Tim Olson brokered the lease for the landlords and CBRE repped Verizon.

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