BKM Capital Partners Buys San Diego Industrial Portfolio
Cushman & Wakefield has brokered the sale of the Otay Mesa Industrial, a six-property industrial portfolio in San Diego. The company represented seller Stockbridge Capital Group. BKM Capital Partners acquired the assets. In another recent deal, BKM acquired a 302,869-square-foot industrial business park for $84.8 million.
The properties in the Otay Mesa portfolio are:
Borderpoint Business Park at 6754, 6744 & 6794 Calle De Linea
San Diego International Center at 8830 Siempre Viva Road
Faraday Industrial Park at 2325, 2345, 2365, 2375 Michael Faraday Drive
Otay Business Center at 6987 & 6995 Calle De Linea
Frontera Business Center at 2695 Customhouse Court
Otay Crossing Business Park at 2340 Enrico Fermi Drive and 10025 Siempre Viva Road
The portfolio consists of 14 buildings totaling more than 703,000 square feet, located adjacent to the international border with Mexico. The facilities are currently 97 percent occupied by 44 diverse tenants. BKM plans to renovate the assets, with improvements including new paint, landscaping and signage, as well as updating HVAC systems and changing the roofs.
“This strategic location provides tenants with unmatched access across the border, as well as direct access to the State Route 905 and Interstate 5,” BKM Capital Partners CEO & Co-Founder Brian Malliet said in a prepared statement. “Major corporations such as Kraft, Sharp, Bose, General Dynamics and Camelback have already taken large positions in Otay Mesa in order to bolster access to key components of the supply chain. With the opening of the new Port of Entry to Mexico in late 2019, demand for high-quality industrial assets in the region will continue to grow, further placing upwards pressure on rental rates.”