SAN DIEGO, Calif. – February 8, 2023 – Cushman & Wakefield today announced the firm has advised an Ares Management Real Estate fund (“Ares”) in the sale of a 601,103-square-foot multi-tenant industrial building in the Otay Mesa submarket of San Diego, California. Located at 2020 Piper Ranch Rd, the fully leased Class A asset is considered one of San Diego’s largest iconic industrial buildings. The facility was acquired by LaSalle Investment Management.
Cushman & Wakefield’s Jeff Cole, Jeff Chiate, Bryce Aberg, Rick Ellison, Mike Adey, and Zach Harman of the firm’s National Industrial Investment Advisory Group in Southern California represented the seller in the transaction. Brant Aberg with Cushman & Wakefield and Bill Dolan and Rob Hixon of CBRE also provided local market leasing expertise. The facility is situated on over 31 acres in the Otay Mesa submarket, optimally located with direct access to the US-Mexico border, one of the world’s busiest land border crossings. Ares had acquired the property just over two years ago in Q4-2020. The Cushman & Wakefield team also negotiated that sale.
“2020 Piper Ranch Road is a 100% leased state-of-the-art distribution/warehouse facility that represents a critical mass of Class A industrial real estate on an abundant coastal site. The property resides in one of the most sought-after industrial submarkets in Southern California,” said Executive Vice Chairman Jeff Cole. “Based on these factors coupled with the ongoing growth and demand for well located, attractive industrial product in the region, we were once again able to garner competitive interest for this asset from a strong pool of investor types from across the country and at successful pricing, as we did in 2020.”
“Surrounded by several major corporate neighbors, the project is centrally located within the Otay Mesa submarket that services a broad range of tenants both related to cross border business and San Diego companies looking for highly functional industrial space,” added Vice Chairman Bryce Aberg. “According to Cushman & Wakefield, the 22-MSF Otay Mesa industrial submarket is a market leader in San Diego, recording nearly 1.6 MSF of positive annual net absorption (occupancy growth) in 2022 and 7.3 MSF since the start of 2018. Vacancy in the submarket was only 3.8% as of Q4 2022.”
2020 Piper Ranch was constructed in 2003 and 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’ clear heights, sprinkler systems, and concrete truck courts.
The property offers freeway identity and quick access to the newly completed California State Route 905 freeway while its proximity to the international border provides immediate 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.