Sukut Real Properties, an Orange County–based firm, has purchased Mira Mesa Distribution Center, a 293,800-square-foot multi-building distribution park at 5960 Pacific Mesa Court and 5985 and 5995 Pacific Center Boulevard in the Sorrento Mesa submarket of San Diego, according to a release distributed by a representative of Cushman & Wakefield (C&W). The sales price was not listed in the release, but sources unrelated to the deal report that it was $24 million.
The statement says the seller of the multi-tenant industrial project was The Sickels Group and that the center resides on a ground lease, which has approximately 68 years remaining.
The center was developed in 1989 and comprises three buildings with “flexible divisibility options, efficient warehouse and office layouts, dock and grade loading, great ingress/egress, and competitive parking,” according to the release. It is located near I-5, I-805, and I-15.
Bryce Aberg, Jeff Chiate, Jeffrey Cole, and Ed Hernandez with C&W’s Orange County and San Diego offices represented the seller in the transaction, and brokers Dean Asaro and Brant Aberg with the firm’s San Diego office served as market advisors, according to the release.
Aberg, an executive director, is quoted in the release as saying, “Mira Mesa Distribution Center was a rare opportunity to acquire a sizable multi-tenant distribution project optimally positioned in the innovative Sorrento Mesa submarket, which due to its strong industrial profile makes it one of the most desirable investment markets in Southern California.” He adds that while Sorrento Mesa is known for its inventory of flex/R&D space, “owners of distribution space benefit from the need of distributors to be close to the technology and communication companies in the area. This favorable location creates the opportunity for excellent synergy among businesses.”
Bryce is also quoted as saying that the project is fully leased to a strong and highly diversified mix of 10 national and international tenants.
In the statement C&W reports that direct industrial vacancy in Sorrento Mesa was 4.7 percent at the mid-year mark while direct vacancy in San Diego as a whole stood at just 4.1 percent. Bryce is quoted as saying, “San Diego continues to experience high industrial tenant demand and strong rental rate growth, which is further advantageous to this property’s future as an investment.”
The Sorrento Mesa submarket continues to attract both industrial and office investors. As SoCal Real Estate recently reported, a high-net-worth individual from Los Angeles has purchased a 19,894-square-foot creative-office building located at 5670 Oberlin Drive in San Diego’s Sorrento Mesa submarket in a 1031 exchange for $9.25 million, or $465 per square foot, from Dayani Partners, according to a release from a representative of CBRE.