IDS Picks up ‘Irreplaceable’ 411 KSF San Diego Industrial Asset
- Nov 04, 2011
November 4, 2011
By Nicholas Ziegler, News Editor
Kearny Mesa, one of the better-performing submarkets of San Diego, has netted another big fish: IDS Real Estate Group has acquired a 411,245-square-foot industrial warehouse building there through the firm’s IDS Realty JV II vehicle.
The building, which sold for $50 million according to a CoStar report, is located on 19 acres of land eight miles from the San Diego airport. CBRE Group Inc. represented the undisclosed seller.
“This is a one-of-a-kind building in the central San Diego market, which will be difficult to ever reproduce,” Matt Aminoff, vice president of IDS’ San Diego office, said. “The non-existent supply of land will continue to create a significant barrier to entry. Kearny Mesa statistically and historically has been one of the best performing submarkets in San Diego and currently shows a 3.8 percent overall industrial vacancy rate.”
A recent report corroborated Aminoff’s sentiment, as San Diego has been one of the more stabilizing markets in the country — netting 468,000 of positive net absorption in the third quarter of 2011 — according to Voit Real Estate Services. Additionally, the firm’s research notes that the city’s “industrial market has produced 1.37 million square feet of positive absorption over the past seven quarters, with only one quarter of negative net absorption during that time.”
“Ongoing positive net absorption is the big story, and it’s a strong indication that the market is stabilizing,” Chris Wood, managing director of Voit’s San Diego office, said.
The building is 85 percent leased to tenants including Sharp HealthCare, which has 40 percent of the available space, and medical-supply distributor Owens & Minor, which occupies nearly 66,000 square feet.