San Diego, September 6, 2018 – Cushman & Wakefield announced today that the firm has brokered the investment sale of a 703,215-square-foot industrial portfolio in the Otay Mesa submarket of San Diego, Calif.
The portfolio sale consisted of 14 industrial properties across six projects in Otay Mesa: Borderpoint Business Park (171,516 square feet), Otay Distribution Center (102,875 square feet), San Diego International Center (111,644 square feet), Frontera Business Park (97,961 square feet), and Otay Crossing Business Park (66,184 square feet).
BKM Capital Partners acquired the portfolio from Stockbridge Capital Group. Jeff Chiate, Jeffrey Cole, Bryce Aberg, Ed Hernandez, and Mike Adey in Cushman & Wakefield’s Capital Markets group represented Stockbridge in the transaction, in partnership with Ryan Spradling, Regan Tully, and Brant Aberg, also from the firm, who served as local market experts.
“The portfolio represented a rare opportunity for an investor to acquire a critical mass of real estate in one of San Diego’s most sought-after submarkets,” said Vice Chairman Jeffrey Cole. “The tenancy provides a distinguished corporate image, stable cash flow, and attractive lease terms with staggered expirations in a market with consistently strong tenant demand, diminishing availability, and surging rental rates.”
Executive Managing Director Jeff Chiate, a member of the Cushman & Wakefield’s Industrial Advisory Group, said, “Otay Mesa is becoming a preferred regional distribution area into San Diego. The Otay Mesa industrial submarket has recorded a staggering 1.1 million square feet of positive net absorption over the past five years, driving rental rates upwards with tenant demand at a record high.”
Encompassing over 56 acres within Otay Mesa, the portfolio is located in proximity to the I-5/I-805/SR-905/SR-125 interchange, the U.S.- Mexico border ports of entry, and several airports, providing unsurpassed regional, national, and international access. The properties, developed between 1984 and 2001, feature concrete tilt-up construction with varied bay sizes that accommodate a wide range of configurations, as well as above-standard loading capabilities with grade- and dock-high doors, up to 26’foot clear heights, sprinkler systems, and concrete truck courts.
As the preferred location for industrial tenants, the portfolio was 98 percent leased at the time of the sale to 44 tenants ranging from maquiladoras to regional and national tenants looking for highly functional industrial space. Select tenants at the properties include Avery Products Corporation, Suarez Brokerage, and Trident Maritime Systems.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.