There is a well-known industrial supply-demand imbalance in Southern California, but for class-A product, the supply is extremely scarce. With limited land for new, class-A development and a low single-digit vacancy rate, there is a substantial stock of dated industrial product throughout Southern California, but updating these properties into class-A facilities that meet the unique needs of today's users is a difficult task. Industrial developer CapRock Partners recently converted a dated industrial asset in San Diego into a class-A facility. The 85,824-square-foot industrial facility is located on 5.2 acres 15 miles from Downtown San Diego and was functionally obsolete. In a market with a tight supply for quality industrial product, these characteristics made it ideal for redevelopment.

“10054 Old Grove Road had never been available on the market before,” Patrick Daniels, co-founder and CEO, CapRock Partners, tells GlobeSt.com. “The previous owner occupied it for over thirty years and the space was built out for its specific use. Bob O'Neill, senior vice president of acquisitions at CapRock Partners, led the acquisition of the asset and set a vision for the property that our team was able to carry out. While the property needed significant renovations, the building had unique features for San Diego industrial buildings such as a business park setting, 30-foot warehouse clearance and a glass curtain wall in the warehouse. The finished product provides a turnkey solution for a wide array of potential occupiers.”

It is hard to say when a property is a good candidate for redevelopment, especially in a tight market where a tenant is willing to pay high rents for a dated property. As a result, CapRock takes a singular approach to finding opportunities. “There is no one-size-fits-all formula to repositioning industrial assets,” says Daniels. “Our team takes a strategic entrepreneurial approach and carefully considers many factors in determining the business plan for each property. For example, 10054 Old Grove Road is located near I-15, an essential transportation route in Southern California. We considered the property's location and functionality to design a flexible floorplan that appeals to a variety of users as a potential corporate headquarters, manufacturing and/or distribution facility.”