Why All the Fuss About Eastern Chula Vista?

Chesnut: “The office component of Millenia is the most important component of the entire Millenia master plan.”

CHULA VISTA, CA—With the advent of Millenia Office and its proximity to the cross-border airport, the Eastern Chula Vista submarket is poised to be the game-changer for global companies in the San Diego region, Chesnut Properties principal Lee Chesnut tells GlobeSt.com. His firm has purchased the seven-acre first phase of Millenia Office here, with an option to purchase the balance of the 28-acre site, The corporate/office component of the 210-acre Millenia master-planned community, Millenia Office has entitlements for 2 million square feet of class-A corporate and office space. What will be unique about Millenia Office is the “convergence of major global demographics,” Chesnut tells GlobeSt.com exclusively. “It’s not just the one thing that I’m building, but it’s also the huge economic region that exists between the US, San Diego and Mexico just south of the border.” Chesnut says manufacturing in this part of Mexico has exploded in growth in the last 15 years, creating manufacturing capabilities that are truly becoming world class. “The world’s most impactful corporations have chosen to do manufacturing of high-tech products south of the border—medical devices, high-definition televisions, etc. It’s amazing the amount of manufacturing that’s happening there, and it’s only going to grow.” Due to the scarcity of land in San Diego, with separate land constraints in all four directions, Eastern Chula Vista is one of the few areas where ground-up development and expansion can occur. Chesnut plans to capitalize on this fact by building in the region. In addition, it is in close proximity to Tijuana’s cross-border airport, Rodriguez International Airport , which—thanks to the work of Sam Zell’s team—offers direct flights to Beijing and other international cities pertinent to global companies. “No longer does a company have to go to LAX” to reach these cities from Southern California, says Chesnut. “International travel is a massive inconvenience and a major expense, and we have the best border opportunities. We have the most incredible dynamics for two major countries with the highest economic output in the world—the Baja/SoCal megaregion. I see this as a game-changer for any global-oriented company.” The economics of building in this submarket are undeniable as well, says Chesnut. “The opportunity to acquire land at prices that I would have paid in the early ’90s is incredible. The office component of Millenia is the most important component of the entire Millenia master plan. The reason so many dwelling units have been approved is because they’re looking to build an urban hub for Southeast San Diego County. My project represents the reason for all the other projects that have been approved in the area. I now have the ability with the land I own, without any effort, to deliver the highest density any company could ask for on these lots. It’s a huge amount of regional pull for the success of this project.” Chesnut is expecting Millenia Office to become a place for thousands of people to work and live, paying 50% less than regular markets for rent. “There will be a savings to employees because of the lower housing costs and they are no longer on the freeway.”