The Department of Veterans Affairs signed a 20-year, $148 million lease on an approximately 100,000-square-foot building in Kearny Mesa, which it will convert into a VA outpatient clinic — billed as the only clinic of its kind in Southern California.
Brandon Keith and Kipp Gstettenbauer of Voit Real Estate Services handled the lease, one of the largest medical leases in San Diego history. Also assisting was Voit’s Private Client Group. Voit announced the deal March 26.
The 7.74 acre building site is at 8875 Aero Drive, near the main entrance to Montgomery-Gibbs Executive Airport.
Protea Properties bought the property in August 2017 for $18.5 million. The owners plan to expand the structure by approximately 40,000 square feet. The expansion will include a multi-level parking garage.
The property originally housed a heavily guarded vault that Bank of America used to store cash and coin. The structure has had several owners since the bank stopped using it.
The Voit team was originally retained to manage the property’s sale or lease while in receivership through Trigild in February 2015, several years after Bank of America vacated the property. Voit first showed the property to VA representatives in May 2015 — the same month that the government announced a requirement for an outpatient clinic facility.
“Government transactions of this type and size take a number of years to develop,” Keith said in a prepared statement. “Our team understood the tremendous opportunity for the right owner to transform this property into a profitable long-term asset, while also supporting the nation’s promise to improve health care for veterans.”