Del Mar Office for Sale - North Beach Cities
WATERFRONT CLASS A OFFICE “JEWEL BOX” OWNER/USER OPPORTUNITY WITH IN-PLACE INCOME
* 42% leased two-story Class A office owner/user opportunity with irreplaceable waterfront location and panoramic ocean views overlooking the Los Penasquitos Lagoon.
* The building provides a new owner with ultimate flexibility and optionality to occupy their desired footprint within the building. While the ground floor is 80% leased, the leases have termination rights allowing an owner to occupy the entire building or remain in the top floor with panoramic water views and receive income from the ground floor.
* The property went through an extensive remodel over the past few years totaling approximately $700,000 which entailed a new fitness center, large Cabana sliding doors on the second floor, AC unit repairs, high-end chef’s kitchen, new hardwood floors throughout, bathroom remodel, wiring for high-speed internet, exterior woodwork, new exterior paint, parking lot, etc.
* The building’s ground floor income offers a new owner a very low occupancy cost given the depreciation write-off, principal paydown and building appreciation. This is important for business owners who strive to not only minimize expenses but have their business occupancy contribute to their investment portfolio/retirement. Given the new tax legislation passed July 2025, a buyer would not have any occupancy cost in the first year given the accelerated depreciation rules (assuming a buyer performs a cost segregation study - see Lease vs. Own Analysis on P.29). In fact, the Year 1 tax savings would be greater than the occupancy cost providing a monthly loss carry forward of $57,782/month for future gains.
EXCEPTIONALLY STRONG MARKET FUNDAMENTALS
* The Property’s Del Mar address is among the most sought-after in Central San Diego’s office market. Strong demand for Del Mar has yielded San Diego’s highest rents, now approaching over $6.00/psf for unique Class A attractive space.
* Del Mar office buildings West of the 5 freeway currently have the lowest vacancy rates within San Diego County currently sitting at 5.9% with a 5-year average of 3.1%.
* This strategic location is flanked by the Scripps Medical cluster to the immediate south and the surrounding technology clusters. Del Mar’s central location is well-positioned to attract San Diego’s best and emerging office users.
PRIME COASTAL LOCATION OFFERING THE BEST SAN DIEGO AMENITIES
* The Property’s waterfront location is arguably the best in Del Mar, given its proximity to abundant beach amenities. Its corner-lot site off Carmel Valley Road provides excellent egress/ingress and direct access to the State Route 56 and Interstate 5, one mile away. The Property’s frontage on Carmel Valley Road, Del Mar’s most heavily trafficked thoroughfare, additionally provides exceptional monument signage opportunity.
* The Property is immediately north of La Jolla, with great access to the rest of San Diego County. It is adjacent to some of San Diego’s most affluent neighborhoods and executive housing communities in nearby Rancho Santa Fe, La Jolla, Solana Beach & Encinitas.
* Del Mar is also home to the Torrey Pines State Park and world-renowned for its Del Mar Thoroughbred Club, the second largest horse-racing venue in the U.S. The city offers some of San Diego’s best standard of living amenities, attracting many the region’s most affluent residents. The City’s average household income is approximately $290,370 and average home value over $3,686,000.
