Kearny, PCCP Break Ground on San Diego-Area Industrial Park
- Mar 29, 2018
A joint venture between Kearny Real Estate Co. and PCCP LLC is developing Otay Crossings Commerce Park in Otay Mesa, Calif., adjacent to a new U.S.-Mexico Point of Entry (POE). The $40 million first phase of the 311-acre industrial property broke ground this month and is scheduled for completion by the summer of 2019, to coincide with the opening of the SR-11 extension to the border.
The site will be situated along the final extension of California State Route SR-11, which will connect the existing 905 and 125 freeways to the border. When completed, Otay Crossings Commerce Park will offer finished lots and buildings designed to accommodate a variety of warehouse, storage and distribution facilities.
“Otay Crossings and its surrounding infrastructure will be the largest industrial/commercial business park delivery in San Diego County since the early 2000’s,” Jeffrey Givens, senior vice president with Kearny’s San Diego office, told Commercial Property Executive. “Ultimately, we will be able to offer 150 acres of finished lots for sale which range from two to 25 acres for a wide range of users.”
Additionally, Givens said, with Kearny’s experience as a developer, it can offer built-to-suit and potential speculative industrial buildings for lease or for sale.
“Industrial/business park land in any size is getting harder and harder to come by in Southern California,” Givens said. “Currently in San Diego County, industrial vacancy is below five percent and the only available land for development consists of one-off lots. Otay Crossings’ freeway accessibility provides a unique location for industrial users who need easy access to the border and its cross-border economy, as well as users who may reside in the south county and need options for office/warehouse locations.”
The future POE is being designed to alleviate the extensive wait time at the existing POE, which is located one mile west.
Kearny knows the area
In addition to numerous projects which span from Los Angeles to the Inland Empire, Kearny has extensive experience in Otay Mesa. In 2007, Kearny developed 80 acres of land at the intersection of Britannia Boulevard and Siempre Viva Road.
“Ultimately, 200,000 square feet of industrial warehouse buildings were developed and sold along with 40 acres of land sales to users,” Givens said. “Additionally, Kearny currently provides third-party asset and property management for 1.5 million square feet of industrial multi-tenant space in Otay Mesa.”
Historically, Otay Mesa has been difficult to access and has been predominantly occupied by users who also have business in Mexico. “That aspect of Otay Mesa is still the dominant driving factor for this submarket, but that is now changing,” Givens said. “With the California State Route 125 running north and its connection to the SR-11 extension, property owners will have freeway access within minutes to the 5 and 805 freeways thus providing a viable option for multiple user types who may or may not have business at the border.”
Last July, Kearny Real Estate appointed Sonia Miró as director of property management in the firm’s San Diego office.
Image courtesy of Kearny Real Estate Co.