A Carlsbad office property, marketed as a life-science conversion opportunity, has been sold for $24.75 million.
Chestnut Properties bought the 81,965 square-foot space, made up of two buildings, at 5900-5950 La Place Court.
Senior Director Henry Zahner, along with brokers Steven Jacobson and Steve Gildred of Intersection CRE, represented the seller.
La Place was acquired by Intersection Diversified Value Fund in February 2020. Due to the COVID-19 pandemic, conditions for the office and industrial markets changed, with a sharp drop in interest in general office space, and an increase in demand for research and development properties.
“There is currently a shortage of life science space in the Carlsbad market where demand and conversion of existing product is anticipated to continue,” Zahner said.
The sale of the Carlsbad campus represents the largest transaction for the Intersection Diversified Value Fund, led by Rocco Cortese and Mark Hoekstra.
“The decision to sell the property was tied to our strategy for this project and momentum in the market,” Cortese said. “We have a similar project in Sorrento Mesa that we are also considering for life-science conversion.”
Jacobson called the area around La Place Court one that is expected to become a “premier life science hub” in North County.
“We created a win for both the buyer and seller in this transaction,” he said.