Construction is underway at Otay Crossings Commerce Park in Otay Mesa, California.

Kearny JV Starts $40M Phase I of Industrial Park

Carrie Rossenfeld Industrial

A joint-venture partnership between Kearny Real Estate Co. and PCCP LLC has broken ground on Phase 1 of its 311-acre Otay Crossings Commerce Park adjacent to a new U.S.-Mexico Point of Entry (POE) in Otay Mesa, California. The industrial development, one of the largest to be developed in San Diego County in nearly two decades, will be located along the final extension of California State Route SR-11, which will connect the existing 905 and 125 freeways to the border.

The future POE is being designed to alleviate the extensive wait time at the existing POE, which is located one mile west. Otay Crossings Commerce Park will offer finished lots and buildings designed to accommodate a variety of warehouse, storage, and distribution facilities.

Jeffrey Givens, SVP and member of Kearny’s San Diego office, says, “No matter what happens with NAFTA, Mexico will remain the United States’ third-largest goods trading partner with nearly $600 billion passing through our borders. Otay Crossings Commerce Park’s strategic location at the intersection of the future POE and the South County freeways that provide access to the major Western U.S. truck routes, will offer importer/exporters and 3PL companies with a multitude of finished land options for purchase or build-to-suit.” Givens adds that the firm already has a 40-acre site under contract, which is indicative of demand.

Kearny plans to complete the $40 million first phase of on- and off-site infrastructure improvements and deliver finished lots by the summer of 2019 to coincide with the opening for the SR-11 extension to the border.

Already considered to be the nation’s busiest international truck crossing, Otay Mesa POE averages 2,850 truck crossings a day, or nearly two trucks every minute, according to federal statistics. Federal agencies also report that in 2016, more than $41.8 billion of goods crossed the border through Otay Mesa.

“The new border crossing will reduce delays and better accommodate the more than three million trucks expected to pass through the border by 2025 without sacrificing border safety and security,” Givens adds.

The start of construction of Otay Crossings Commerce Park is the culmination of more than a decade-long period of planning for the Kearny-led partnership, following the land acquisition in 2007. In addition to obtaining the necessary entitlements, Kearny reserved approximately 120 acres of dedicated right-of-way for CalTrans to complete the 1.8-mile last phase of SR-11 and the POE.