San Diego Project Obtains $35M in Financing

Brown Field Technology Center Park. Image courtesy of Murphy Development Company

Murphy Development Co. has landed a $35.4 million construction loan for Phase II of its Brown Field Technology Park in the Otay Mesa submarket of San Diego.

The development will include two Class A industrial buildings totaling 203,244 square feet. JLL Capital Markets arranged the financing, a non-recourse construction loan, through a regional bank.

Scheduled for delivery in the second quarter of 2023, the new buildings will feature clear heights ranging from 32 to 42 feet, 41 dock-high doors, eight grade-level doors, a low office finish and ESFR fire protection.

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The 50-acre Brown Field Technology Park is entitled for more than 3.2 million square feet of building space. The project’s second phase is located on 13.8 acres. According to Murphy Development, the current buildings, designed for distribution and manufacturing tenants, lease from 25,000 to 229,000 square feet. The firm plans to develop a total 1 million square feet in the park.

Located close to the U.S.-Mexico border, Brown Field Technology Park is less than 1 mile from the Brown Field Municipal Airport. The Otay Mesa industrial submarket is in proximity to freeway access, a strong labor pool and a variety of corporate tenants. The largest commercial land port of entry in the nation, Otay Mesa Land Port of Entry, is also nearby, operating more than $50 billion in annual trade.

Murphy Development originally built the park in the 1980s, reacquiring half of the property from The Panasonic Corp. of North America in 2017. Current tenants include The Salvation Army, which has leased 85,504 square feet, as well as Home Depot, with a 124,233-square-foot lease, according to CommercialEdge data.

Senior Managing Director Aldon Cole, Managing Director Bryan Clark and Associate Bradley Vansant from the JLL Capital Markets Debt Advisory team represented Murphy Development in the financing deal.