In what Cushman & Wakefield is hailing as the largest industrial or office sale in San Diego in the last decade (although SoCal Real Estate reported last week on this deal), RAF Pacifica Group has sold an industrial portfolio containing 1,038,132 square feet of 12 class-A industrial assets in San Diego to an undisclosed buyer for $170 million, according to a statement released by a representative of Cushman & Wakefield (C&W). The statement says the portfolio comprises 12 institutional-quality core industrial assets in Carlsbad (3 projects), Vista (4 projects), San Marcos (3 projects), and nearby Temecula (2 projects), which is technically the Inland Empire.
According to the release, properties in the disposition include: dis·trib·ute at 3261 and 3266 Lionshead Avenue, Carlsbad; 3193 Lionshead Avenue, Carlsbad; 2281 Las Palmas Drive, Carlsbad; gen·er·ate at 1125 Joshua Way, Vista; 1385 Park Center Drive, Vista; 2641 and 2651 La Mirada Drive, Vista; 120 Mata Way, San Marcos; pro·duc·tion at 195 Bosstick Boulevard and 2946, 2950 and 2954 Norman Strasse Road, San Marcos; 1880 Diamond Street, San Marcos; 26201 Ynez Road, Temecula; and 42259 Rio Nedo Road, Temecula.
The release describes the properties as “ideal for traditional manufacturing and distribution tenants,” constructed with “highly efficient warehouse designs and loading capabilities, low office build-out percentages, expansive clear heights, and strategic layouts for effective parking, loading, and truck traffic flow.”
Aric Starck, executive managing director with C&W’s San Diego office, represented the seller in the transaction, while the buyer was self-represented, the statement says. In the release, Starck is quoted as saying that the portfolio combines a mix of existing core assets, renovated warehouse/distribution centers, and newly developed modern projects. “Each asset is strategically positioned in sought-after locations characterized by superior access to freeways, amenities, airports and residential communities.”
Starck adds in the release the RAF Pacifica portfolio “represented a rare opportunity to acquire a critical mass of industrial real estate in a region with unprecedented industrial demand.”
The statement says that, according to C&W’s latest official market report, San Diego County posted a direct vacancy rate of 4.1 percent as of midyear 2018, with North County direct industrial vacancy slightly higher at 4.9 percent. The release adds that through midyear, San Diego County achieved over 720,700 square feet of occupancy growth, with more than half of that growth (492,400 square feet) in the North County area.
Starck also comments in the release, “North County’s diversified regional economy is fueled by a range of growing industries including e-commerce, software, life sciences and defense. An ecosystem rich with distinguished companies, a talented workforce and educational facilities provide a solid foundation for which the industrial market thrives. Unprecedented tenant demand in North County has generated tremendous occupancy growth since 2010.”
As SoCal Real Estate reported in July, at that time, RAF Pacifica Group had more than 1 million square feet of industrial and mixed-use product in development throughout San Diego County.