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KEARNY MESA, CA-Argus Realty Investors has acquired Chesapeake Park Plaza for $22.1 million as part of a TIC deal. The San Juan Capistrano-based firm and 24 of its tenant-in-common investors bought the property from Portland, OR-based ScanlanKemperBard Cos. Located at 9665 Chesapeake Dr., two blocks from Interstate 15, the four-story, 93,213-sf class A office property counts 16 tenants and was 96% leased. As part of the deal, Argus secured a seven-year loan for 78% of the purchase price, interest only for the first four years with a 30-year amortization from an institutional lender.Strong leasing conditions in the area were one of the reasons for Argus’ acquisition of the property. “Torto Wheaton Research predicts Kearny Mesa’s rental rates will grow at 8.8% in 2005,” says Dick Gee, Argus Realty’s chairman and CEO. Gee adds that Chesapeake Plaza’s status as an “institutional property” and its immediate access to the freeway were among the other reasons for the buy.Built in 1987, the property includes a fitness center, a gourmet deli and subterranean parking. Major tenants include: Brown & Caldwell, an environmental engineering firm that takes up 18% of the building; and Radiant Research which holds 16% of the space. In the deal, Nick Psyllos, senior vice president with CB Richard Ellis’ San Diego office represented the seller while Argus was represented in-house by Jean Murphy, a senior vice president with the firm. Scott Kincaid and Bob Gossett of the CB Richard Ellis San Diego office have been retained as leasing agents for the property.Chesapeake Plaza is Argus’ second San Diego investment, according to Tim Snodgrass, Argus’ president. Snodgrass says the firm sold a 195,000-sf distribution site in Otay Mesa last year. He adds that Argus sold the property “three years earlier than projected and our tenant-in-common investors realized an 18.1% annual return.” While ScanlanKemperBard sold the property, they’re not finished in the San Diego market, according to David Werts, senior vice president for the firm, who says “SKB will continue to pursue acquisitions in San Diego and throughout the West and is on schedule to meet a $300-million acquisition target for 2005.”

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