Otay Mesa Business Parks Sold For Undisclosed Amount
A Newport Beach investment firm has acquired 14 industrial buildings in six separate Otay Mesa projects covering more than 56 acres for an undisclosed amount of money.
Borderpoint Business Park Photo courtesy of Cushman & Wakefield
BKM Capital Partners bought the properties in a single transaction from Stockbridge Capital Group.
The portfolio sale included the 171,516 square-foot Borderline Business Park, the 102,875 square-foot Otay Distribution Center, the 111,644 square-foot San Diego International Center, the 97,961 square-foot Frontera Business Park, and the 66,184 square-foot Otay Crossing Business Park.
Jeff Chiate, Jeffrey Cole, Bryce Aberg, Ed Hernandez and Mike Adey in Cushman & Wakefield’s Capital Markets group represented Stockbridge.
Partnering with them were Ryan Spradling, Regan Tully and Brant Aberg of Cushman & Wakefield as local market experts.
BKM Capital represented itself.
“Otay Mesa is becoming a preferred regional distribution area into San Diego,” Chiate said. “The Otay Mesa submarket has recorded a staggering 1.1 million square feet of positive net absorption over the past five years, driving rental rates upward with tenant demand at a record high.”
Net absorption is a measure of how much space is newly occupied compared to how much is vacated.
The 14 buildings were 98 percent leased at the time of the sale with 44 tenants including Avery Products Corp., Suarez Brokerage and Trident Maritime Systems.
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,” Cole said.