SAN DIEGO—Consistent with GlobeSt.com's recent story on this property type, North County has seen its share of multi-tenant industrial deals this week, with three transactions closing in Carlsbad, Vista and Oceanside. The transactions occurred in a market that has become exceedingly tight on industrial vacancy, as much of the Southern California market is these days.
Gildred Development Co. has acquired a 21,481-square-foot multi-tenant industrial/flex building at 5924 Balfour Ct. in Carlsbad from North Coast Marketing LLC, an affiliate of Hamilton Pacific Properties, in an off-market transaction for what Real Capital Analytics reports was $4.3 million. The building is situated on a 1.55-acre site at the corner of Balfour and Rutherford Rd. and was 100% leased to five tenants at the time of sale. Jeff Sallen with Cushman & Wakefield represented the buyer, while C&W's Chris Baumgart, in conjunction with Todd Davis of Kidder Mathews, represented the seller. The property is centrally located in the 560-acre master-planned Carlsbad Research Center, which features many of North County's high-profile businesses such as Callaway Golf, Zimmer Dental, Cobra, Nixon, Thermo-Fisher, Genoptix and Reef.
In addition, Coastal Investment 2 LLC has purchased Rancho Del Oro Technology Park, a 30,809-square-foot multi-tenant business park at 4168 Avenida de la Plata in Oceanside from GRT Properties LLC for $3.5 million. The project consists of 16 individual industrial/flex suites ranging in size from 1,700 square feet to 3,000 square feet and features 100% ground-floor units, 16-foot clear height and parks 3.1 spaces per 1,000 square feet. Isaac Little, Marko Dragovic, Matt Weaver and Al Apuzzo of Lee & Associates—North San Diego County represented the buyer, while Larry Strickland of the same office represented the seller.
Lastly, the same Lee teams represented buyer and seller, respectively, in the $7.5-million sale of a multi-tenant industrial business park at 2330, 2332 and 2336 La Mirada Dr. in Vista. The park, known as Thibodo Ranch Business Center, is composed of 30 individual units situated on a 4.63-acre lot. Built in 2005, the 53,572-square-foot center offers modern amenities, including 26 on-site cameras, tropical landscaping and wet bars in units. Additionally, each unit is equipped with fire sprinklers, HVAC in office areas and its own private restroom. The buyer, La Mirada Drive LLC, a private investor, plans to stabilize the project and hold it as a long-term investment property.
Lee's Little tells GlobeSt.com exclusively, “Because vacancy rates are dropping below 3% and lease rates are pushing upwards of 12% to 15% from where they were one year ago, multi-tenant industrial properties have become the most highly valued assets in North San Diego County. An investor can still purchase an existing multi-tenant park for approximately 60% to 70% of the total cost to build a similar industrial property. In addition, there are no new small-bay multi-tenant industrial parks planned for construction in North County, which should will keep vacancy rates low and rental rates healthy.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
