State-of-the-art building acquired by Denver-based Black Creek Group
San Diego CA— Cushman & Wakefield announced the firm has advised an institutional owner in the disposition of a 601,417-square-foot multi-tenant industrial building in San Diego, California. Located at 2020 Piper Ranch Rd, the fully leased Class A asset is considered San Diego’s largest iconic industrial building. The facility is situated on more than 31 acres in the Otay Mesa submarket, optimally located with direct access to the US-Mexico border, one of the world’s busiest land border crossings. The buyer was Denver-based Black Creek Group, which acquired the property for an undisclosed amount.
Cushman & Wakefield’s Jeff Cole, Jeff Chiate, Bryce Aberg, Ed Hernandez, Mike Adey, and Zach Harman of the firm’s National Industrial Investment Advisory Group in Southern California represented the seller in the transaction. Brant Aberg with Cushman & Wakefield and Bill Dolan and Rob Hixson of CBRE also provided local market leasing expertise.
“2020 Piper Ranch Road is a state-of-the-art distribution/warehouse facility that presented the rare market opportunity for a critical mass of Class A industrial real estate that is 100% leased and situated in one of the fastest-growing submarkets in Southern California,” said Vice Chairman Jeff Cole. “Given these factors coupled with the ongoing strong demand for high quality industrial product, particularly with stable tenancy, we were able to procure exceptional interest for this asset from an assortment of investor types across the country.”
Surrounded by several major corporate neighbors, the project is centrally located within the Otay Mesa submarket that services a broad range of tenants both related to cross border business and San Diego companies looking for highly functional industrial space. 2020 Piper Ranch was constructed in 2003 and features concrete tilt-up construction with varied bay sizes that accommodate a wide range of configurations, as well as above-standard loading capabilities with grade and dock-high doors, up to 32’ clear heights, sprinkler systems, and concrete truck courts.
The property offers freeway identity and quick access to the newly completed California State Route 905 freeway while its proximity to the international border provides immediate access to Tijuana International Airport, the planned Otay Mesa East Port of Entry border crossing, and the new Cross Border Xpress airport terminal, a processing facility with a cross-border bridge that improves domestic and international access. The project also lies within the Foreign Trade Zones and HUB Zone, significantly benefiting local trade operations.
Bryce Aberg, Executive Managing Director, said, “San Diego remains a challenging market to acquire or develop new buildings as the area is essentially built-out and land costs are high, while the lack of available large parcels for new development poses a significant barrier to entry. This asset provided the incredible chance to acquire both a large industrial facility situated on an abundant piece of coastal land.”
According to Cushman & Wakefield’s latest Q3 2020 market report, the 16-msf Otay Mesa industrial market has recorded a staggering 1.4 msf of positive net absorption (occupancy growth) since 2015. Vacancy in the submarket was 6.8% in the third quarter of 2020.