South San Diego Distribution Center

San Diego, CA

Acquired October 2021

At a Glance

A three-building, 665,000-square-foot industrial portfolio in San Diego, California. The three properties are 96 percent leased to eight tenants.

Investment Rationale

  • San Diego’s diverse economy is driven by technology, healthcare, biotech, life science, Department of Defense and defense contractors, along with tourism and trade with Mexico. The overall San Diego industrial market consists of nearly 200 million square feet and faces geographic barriers to new supply due to its borders with Camp Pendleton on the north, the Pacific Ocean on the west, mountains and desert to the east and Mexico’s border on the south.

  • These buildings, located in the South County area, and more specifically the Otay Mesa industrial submarket, are 1.5 miles from the US-Mexico border with critical proximity to the Otay Mesa Port of Entry, the most active truck border in California.

  • San Diego is a highly rated overweight industrial market, according to LaSalle Research & Strategy’s target market analysis. The market’s overall industrial vacancy is currently just above 3 percent, and while there is new supply coming online, absorption is expected to be strong, allowing for further rent growth in the near future.

Property Gallery


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