SAN DIEGO-KM Phoenix Associates LLC has secured a new tenant for its Kearny Mesa office/flex facility, as the State of California, Department of Health Services has inked a lease for 15,252 sf here.

In a move designed to reduce overhead, the new tenant will use the Kearny Mesa space to house its local administration offices. Its eight-year agreement with KM Phoenix Associates is valued at more than $3 million.

Bill Bacon of CB Richard Ellis represented the Department of Health Services in the recent transaction. Richard Gonor, Bill Cavanagh and Tony Russell of BRE Commercial/NAI’s San Diego office acted on behalf of the landlord.

KM Phoenix Associates purchased the Kearny Mesa asset in July 2001 from Dallas, TX-based Transcontinental Realty Investors for nearly $6.6 million. Other recent tenants that have signed on here include Premerica, which inked a 5,367-sf, five-year lease earlier this year in a deal valued at $466,242.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.