Redeveloped Office Building In Kearny Mesa Fetches $30.1M

Local developer Bixby Land Co has sold AERO, a 92,463 SF office building at 9797 Aero Drive in the Kearny Mesa area for $30.1M, or $326/SF. Bixby had invested $5M repositioning the single-tenant building to a multi-tenant creative office space and adding about 20k SF. Berkley Insurance and Vital Decisions are tenants, and the building will be almost fully occupied when buyer AVID Center, a locally based college readiness system, takes occupancy of most remaining space.

“This project presented the opportunity to take an innovative approach in developing a building unlike anything else in the Kearny Mesa submarket,” Bixby president Bill Halford said.

"We’re committed to an investment and development strategy that adds significant value through the thoughtful redesign of buildings that represent the forefront of contemporary work environments,” Bixby EVP/COO Aaron Hill said.

Designed by Gensler & Associates, the improvements included upgrading the east elevation with new window glazing and red rectangular framing elements. Custom overhead doors open up the building to outdoor areas. Amenities include the signature Bixby Retreat, an energetic outdoor gathering area, a fitness center with showers, bicycle storage, a lobby lounge area and garage parking. The interior features polished concrete floors, exposed ceilings and open floor plans to accommodate flexible, creative designs.

Hughes Marino EVP John Jarvis repped the buyer, and Cushman & Wakefiled managing director Derek Hulse repped Bixby.