LaSalle Acquires 601 KSF Industrial Building in San Diego

2020 Piper Ranch Road. Image courtesy of Cushman & Wakefield

LaSalle Investment Management has purchased a 601,103-square-foot multi-tenant industrial building in San Diego’s Otay Mesa submarket. Cushman & Wakefield advised the seller, an Ares Management Real Estate fund.

The Class A building is on 31 acres at 2020 Piper Ranch Road. It was completed in 2003 and is fully leased.

The transaction’s dollar value was not disclosed. The property had been purchased by Ares in November 2020 for $109 million, according to information provided to Commercial Property Executive by CommercialEdge. Cushman & Wakefield also negotiated that sale.

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2020 Piper Ranch 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-foot clear heights, ESFR sprinkler systems and concrete truck courts.

The property offers freeway identity and quick access to the newly completed California State Route 905 freeway, and its proximity to the U.S.-Mexico border provides convenient 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.

Executive Vice Chairman Jeff Cole, Vice Chairman Bryce Aberg, Executive Vice Chairman Jeff Chiate, Executive Vice Chairman Rick Ellison, as well as Associates Mike Adey and Zach Harman of Cushman & Wakefield’s National Industrial Investment Advisory Group in Southern California represented the seller in the transaction. Cushman & Wakefield’s Vice Chairman Brant Aberg and Senior Vice Presidents Bill Dolan and Rob Hixon of CBRE also provided local market leasing expertise.

Active at the border

Citing Cushman & Wakefield research, Bryce Aberg described the 22 million-square-foot Otay Mesa industrial submarket as “a market leader in San Diego,” with almost 1.6 million square feet of positive net absorption in 2022. He added that vacancy in the submarket was just 3.8 percent as of the fourth quarter.

Only days ago, Elevation Land Co. announced plans to develop Otay Business Park, a 1.8 million-square-foot industrial campus in San Diego, in partnership with a fund advised by Crow Holdings Capital.