Black Creek Buys Vista Corporate Center for $147.5M

Black Creek Group has acquired North County Corporate Center in $147.5 million from Barings. At 493,898 square feet, NCCC is the largest pure industrial distribution center in Vista, California. It was 100% leased at the time of the sale.

The five-building property is located in a high-image business park environment. It features 26-foot clearances, ESFR and ESFR-ready sprinkler systems, abundant dock-high loading, large truck yards and modern offices. It was built to cater to a variety of users of different sizes. It is currently 100% leased to six tenants, creating “solid, in-place cash flow from a diverse rent roll with…staggered lease expirations,” according to Bret Hardy, executive managing director at Newmark.

Hardy along with Newmark executive managing directors Jim Linn, Andrew Briner and Brunson Howard and co-head of U.S. capital markets Kevin Shannon represented the seller in the transaction.

The property is well positioned to access Greater San Diego as well as Los Angeles and the Inland Empire. The industrial market in San Diego is in high demand with a low vacancy rate of 4.5%. Due to the strong demand in the market, industrial pricing increased during the pandemic. “We have actually seen prices rise during the pandemic as industrial real estate provides durable strong yields on a risk-adjusted basis,” says Jeff Chiate, VP of industrial capital markets at Cushman & Wakefield in an earlier interview about the market activity. “There is currently more capital in pursuit of industrial product then we have ever experienced. We expect this insatiable demand to continue as more capital gravitates to industrial and away from office, retail and hospitality.”

There is also an active construction pipeline where land is available for development. Murphy Development is bringing new supply to San Diego’s supply-constrained industrial market. The firm has broken ground on two industrial facilities at Brown Field Technology Park in Otay Mesa totaling more than 200,000 square feet. The two properties include a 105,150-square-foot building and a 123,913-square-foot building. Both buildings are being built on spec and are scheduled for delivery in the third quarter.