Murphy Development Company has sold a 665,229-square-foot industrial campus near the border in Otay Mesa for $158.5 million, officials said.
Known as The Campus at San Diego Business Park, the project consists of three freestanding buildings at 2001, 2055 and 2065 Sanyo Ave. It was nearly 98% leased to eight tenants at the time of sale.
LaSalle Investment Management bought the 37-acre property from Murphy Development, located in Otay Mesa.
Jeff Chiate, Jeffrey Cole, Bryce Aberg, Ed Hernandez, Mike Adey and Zach Harman of Cushman & Wakefield’s National Industrial Advisory Group represented the seller in the transaction.
Aberg, along with Andy Irwin and Joe Anderson of JLL, provided leasing advising.
“The Campus was a rare market opportunity for an investor to acquire a significant industrial portfolio of high quality, institutional quality assets with a strong tenant profile,” said Chiate, vice chairman at Cushman & Wakefield.
He added that the site provides “unsurpassed regional, national and international access.”
The three-phase project – the oldest building, 2001 Sanyo, was constructed in the late 1980s, while 2065 Sanyo was built a year ago – features divisible spaces with a variety of bay sizes, loading doors, sprinkler systems and concrete truck courts. There is also gas service at the site.
According to Cushman & Wakefield’s third-quarter 2021 industrial market report, occupancy growth year-to-date in Otay Mesa has reached nearly 4.3 million square feet, driven by a massive build-to-suit project.
Meanwhile, direct submarket vacancy was just 3.3% at the close of the quarter.
“South County industrial property remains among the most sought-after among both tenants and owners,” said Aberg, Cushman & Wakefield’s executive managing director. “Otay Mesa maintains impressive market fundamentals benefiting from extreme rent growth coupled with strong occupancy growth and demand. The area also provides access to a large labor supply.”
Murphy Development plans and develops corporate industrial, technology and life science parks. In Otay Mesa, the 35-year-old company has developed or planned in excess of 10 million square feet. The company also is developing 31 acres in Scripps Ranch.