BentallGreenOak Acquires San Diego Industrial Portfolio

1205-1225 Park Center. Image courtesy of Cushman & Wakefield

BentallGreenOak has added seven properties in northern San Diego to its industrial portfolio in California. Cushman & Wakefield brokered the sale, representing the undisclosed seller who sold the portfolio to BentallGreenOak for an undisclosed price.

The Class A industrial portfolio totals 614,020 square feet, which is split among seven manufacturing and distribution buildings that are all within a five-mile radius. The largest portion of the portfolio is Vista Distribution Center, a three-building distribution center that was built in 1990 with building sizes between 75,840 and 180,800 square feet. The remaining four free-standing buildings in Vista, San Marcos and Carlsbad range between 31,246 and 135,000 square feet and were built between 1988 and 2010.

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According to Cushman & Wakefield, the portfolio is 100 percent leased to 11 tenants, including US Foods, Natural Alternatives International, Inc., 24 Hour Fitness, Dr. Bronner’s, Captek, Totally Bamboo and Service Partners. The industrial properties are located near Interstate 78 and the industrial corridors of Interstates 5 and 15, offering tenants easier access to Orange County, Central San Diego and Riverside County.

Aric Starck, vice chairman at Cushman & Wakefield, said in prepared remarks that the San Diego market has been seeing low vacancy for its industrial sector because of the strong demand from e-commerce and warehousing, manufacturing, R&D, defense and life science sectors. He added in his prepared statement that the demand has led to unprecedented leasing velocity and overall fundamentals.

However, BentallGreenOak isn’t just interested in building out its San Diego industrial portfolio. The company acquired a 1 million-square-foot bulk distribution warehouse in Jefferson, Ga. in October 2021, marking the firm’s second major industrial acquisition in the Atlanta area for that year. BentallGreenOak also set the record for the highest price ever paid for a single-building industrial property in Arizona after its acquisition of a 1.3 million-square-foot industrial facility in Glendale, Ariz.