CBRE Closes Sale of 128 KSF San Diego Industrial Park
- Aug 17, 2017
CBRE has arranged the $18 million sale of Southrail Business Park, a 128,160-square-foot industrial asset in Chula Vista, Calif. A 1031-exchange buyer acquired the property from Focus Real Estate LP. Focus Real Estate LP purchased the industrial park from Westcore Properties for $11.2 million in 2014, according to the San Diego Business Journal. Westcore acquired the asset in 2002.
Located on nearly eight acres at 648-696 Marsat Court, 645 Marsat Court and 1548-1596 Jayken Way, the ten buildings were 98 percent leased to 31 tenants. The property, built in 1987, features clear heights from 15 to 18 feet and includes suites that range from 1,950 to 10,494 square feet. The site provides easy access to interstates 5 and 805, as well as to retail amenities. Less than four miles east, Stos Partners recently acquired a 170,805-square-foot industrial complex for $13.5 million, in an off-market transaction.
Tight submarket fundamentals
“This was a great opportunity to own a business park that has maintained a better than average occupancy rate of 94 percent over the past five years due to the tight submarket fundamentals, quality, access to the five freeway, trolley line and its varying unit sizes”, said CBRE’s Matt Pourcho in prepared remarks. “The buyer was a private 1031 buyer from Los Angeles and we continue to see private buyers substantially outperform institutional buyers”. Pourcho, Gary Stache, Anthony DeLorenzo and Doug Mack represented the Orange County-based seller.
In the second quarter of 2017, South San Diego recorded 152,023 square feet of negative absorption, while the total vacancy increased 50 basis points to 5.8 percent, up 30 basis points year-on-year, according to CBRE research. The South County industrial market continues to be bullish due to recent and pending activity, current demand and diminishing supply for industrial product.
Image courtesy of CBRE