Occupier Demand and Rents Remain Strong in Otay Mesa

CapRock Partners recently sold a newly renovated class-A distribution building totaling 210,156 square feet in the Otay Mesa neighborhood of San Diego. The 100 percent leased multi-tenant property was acquired by an undisclosed investment firm.

CapRock recently completed several million dollars in capital improvements in 2020 prior to sale. The building was originally built in the late 1980s.

Bryce Aberg, Jeff Chiate, Jeffrey Cole, Ed Hernandez, Mike Adey and Zach Harman of Cushman & Wakefield represented the seller in the transaction. Brant Aberg of Cushman & Wakefield along with Joe Anderson and Andy Irwin of JLL provided market leasing advisory.

“This was a very attractive investment offering of a high-quality industrial facility well-located in a sought-after Otay Mesa submarket, and where occupier demand and rents remain strong, and supply is diminishing in South County,” said Bryce Aberg. “The existing multi-tenancy provides a stable cashflow and attractive lease terms with staggered expirations.”

Located at 1855 Dornoch Ct. on 10.6 acres, the facility has proximity to the I-5/I-805/SR-905/SR-125 interchange, the U.S./Mexico border points of entry, and several airports. It is also in a Foreign Trade Zone.

“Southern California’s industrial market remains popular for investors due to the ongoing robust tenant demand across the region from multiple industries combined with limited supply and convenient port and customer accessibility,” said Chiate. “We also continue to see this investor trend across the U.S. as the industrial sector remains among the most desired commercial asset classes, driven by occupancy growth and need.”