Four industrial buildings within San Diego’s Siempre Viva Business Park in Otay Mesa have been sold to an affiliate of IDS Real Estate Group, according to a release from a representative of HFF, which represented the seller. The rep was unable to provide SoCal Real Estate with the identity of the seller or the sale price, but industry sources tell us the developer, Murphy Development, sold all four buildings in 2003 to Weingarten Realty Investors and that the most recent owner of the properties was a labor-union pension fund operated by PNC.
Situated on 28.1 acres within the park, the 99 percent leased portfolio the IDS affiliate purchased includes 8690 Kerns Street, 2660 Sarnen Street, and 8863 and 9043 Siempre Viva Road. According to the statement from HFF, the four-building portfolio totaled 544,864 square feet; industry sources report that the Weingarten purchase at the park had been for 726,766 square feet and included seven buildings in total.
Originally constructed between 2001 and 2003, the portfolio properties feature 24- to 32-foot clear heights, wide truck courts, loading via 98 dock-high and 14 grade-level doors, an above-standard parking ratio, and low office build-out, HFF reports.
The statement also says the park features access to I-5, I-8, I-15, and I-805, which connect to Southern California’s vital trade routes, according to the release. The statement also says the Otay Mesa industrial submarket is home to the highest concentration of Fortune 500 companies in San Diego and benefits from its proximity to the United States/Mexico border.
The HFF investment advisory team representing the seller included senior director Nick Frasco, senior managing director Nick Psyllos, and managing director Andrew Briner, the release says.
Frasco is quoted as saying, “The Siempre Viva Portfolio represented an exceptional opportunity to acquire a critical mass of institutional-quality industrial logistics product in a highly desirable Southern California location. The portfolio’s diverse tenant roster, which consists of global and national companies with a weighted average remaining lease term of 3.3 years, combined with strong submarket fundamentals that have resulted in an impressive 43 percent rent growth in the past 36 months make the portfolio particularly attractive.”