Infill Last-Mile Distribution Facility Grabs Realterm Logistics’ Attention

Lincoln Property Company recently sold a newly renovated 104,510-square-foot freestanding class-A last-mile distribution facility on more than 10.5 acres in the Kearny Mesa submarket of San Diego. The property went for $64.25 million to Realterm Logistics, an Annapolis, MD-based owner and manager of logistics facilities serving the transportation industry.

Prior to the sale, Lincoln Property Company completed significant capital improvements and repositioning of the asset, which was originally built in the 1980s. The single-tenant facility is 100 percent leased to a Fortune 50 e-commerce company.

Bryce Aberg, Jeff Chiate, Jeffrey Cole, Ed Hernandez, Mike Adey and Zach Harman of Cushman & Wakefield represented the seller, a real estate fund managed by Dallas-based Crow Holdings Capital.

“This was a very attractive offering of a critical-mass facility with an irreplaceable infill location in the heart of San Diego while supported by an ideal high-credit global tenant,” said Aberg. “The property’s strategic location within the Kearny Mesa submarket is near major freeways and central to San Diego County’s various residential communities, San Diego International Airport, the Port of San Diego and the extensive amenity base San Diego has to offer.”

Located at 7995 Armour St. off Kearny Mesa Road, the property features good ingress/egress, efficient warehouse and office layouts, dock and grade loading capabilities, and ample parking. The facility is positioned along State Route 163 freeway near the Highway 805 interchange.

“Southern California’s industrial/distribution sector remains white-hot, driven by a multitude of industries including e-commerce. New and/or renovated class-A facilities that are well-leased or vacant remain in high demand by investors due to strong ongoing and future tenant demand,” said Chiate.