$6.7M Acquisition Loan on a Kearny Mesa Office Building

For a quarter century, 5575 Ruffin Road was financed as part of something bigger. Principal Life recorded $16,250,000 in 2000, MetLife carried a modification at $19,312,164 in 2011, ACRC recorded $17,100,000 in 2013, Mesa West $18,300,000 in 2016, and Pacific Western Bank $23,500,000 in 2019, instruments sized to the three building Apex office park the property belongs to. The 2026 recordings are sized to one building: a $12,075,000 sale recorded April 15, and a $6,700,000 JPMorgan Chase acquisition deed of trust executed April 13 and recorded April 16 for buyer Tierra Grande 3b Llc.

The building, marketed as Apex Building 3, is a two story multi tenant office of 34,280 square feet per county records, built in 1987 on 1.61 acres in Kearny Mesa, with leasing materials showing roughly 10,496 square feet available across five suites. The tenant roster leans hard into healthcare: directory listings place the Hospital Association of San Diego and Imperial Counties, the San Diego County Medical Society, Concentra Urgent Care, Suncrest Hospice, and Leidos QTC Health Services at the address.

That tenancy matters for the financing read. Suburban office is the asset class banks are said to avoid, but a building functioning largely as medical and health services space, in a county submarket built around health institutions, drew a money center bank acquisition loan days after the sale recorded.

J.P. Morgan's 21 tracked closings make it the database's most active lender, and while most are multifamily, this loan is one of several across office, retail, and mixed use, five of them in San Diego County. Within the tracked county record it ranks 20th of 25. The only other tracked San Diego office closing this spring is a $6,950,000 loan from Wilshire Quinn Income Fund, a private lender, in Rancho Santa Fe, which puts this deal's bank execution in relief: two county office financings, one bank, one private.

For office owners, the two lessons in this record run together. First, park scale institutional debt does not have to be replaced with park scale debt; a single building can be carved out, sold, and financed on its own. Second, the difference between financeable and unfinanceable office in 2026 is often the rent roll's industry mix. A medical heavy roster took this building from life company portfolio collateral to a clean single asset bank loan.