Lincoln Property JV Sells Industrial Asset for $162M

Kearny Mesa Logistics Center. Image courtesy of Newmark

Lincoln Property Co. and a real estate fund advised by Crow Holdings Capital have sold their 299,381-square-foot distribution facility in San Diego. Terra Enterprises purchased the newly completed Kearny Mesa Logistics Center for $162.1 million, according to Commercial Edge data.

The Class A industrial facility is fully leased to Amazon, in accordance with the same data. Situated in the Kearny Mesa submarket, the property provides easy access to the Greater San Diego area through major thoroughfares including Interstate 805, I-15, SR-163 and SR-52.

Located at 5650 Kearny Mesa Road, the on 15.2-acre industrial asset features 36-foot clear heights, a cross-dock configuration, 120-foot concrete truck courts and dock-high loading capabilities.

The sellers were represented in the deal by Newmark’s Kevin Shannon, Co-Head of U.S. Capital Markets, along with Executive Managing Directors Andrew Briner, Bret Hardy, Jim Linn, Brunson Howard and Ken White.

Strong demand for industrial space

Lincoln Property Co. and Crow Holdings have previously teamed up for another San Diego-area acquisition, with the purchase of a 112,000-square-foot industrial property in 2020.

San Diego continues to benefit from a high demand for industrial space. Year-over-year, the average vacancy rate as of the third quarter of 2022 went down 2.4 percent, while the average asking rent per square foot in the same period went up by $1.41, according to a report by Cushman & Wakefield.

The area is not only a hot spot for industrial developments, but life science projects as well. Due to its location and access to a growing workforce, San Diego is among the nation’s largest hubs for life science construction and investment activity.