Otay Crossings Commerce Park
Kearny acquired 311 acres in 2007 in the Otay Mesa submarket of San Diego in partnership with Pacific Coast Capital. The site is raw land on the Mexican border and involves entitlements, inclusive of a supplemental EIR, tentative and final maps and development on and off-site improvements. The partnership has also acquired an additional 229 acres of land for offsite mitigation. The project will enable development of approximately three million sf with project costs of approximately $400 million.
There is a right-of-way reservation of 130 acres for the SR-11 (1.8 mile extension off the 905 running southeast to the Mexican border) and a new international border crossing. The Kearny professionals used their experience to bring the Federal and Mexican Governments, the State of California, the County of San Diego, SANDAG, and CalTrans to a timely resolution of the numerous challenges involved in garnering approvals and financing for the new toll road and border crossing.
Kearny successfully achieved approvals of the project EIR and Tentative Parcel Map in 2011 and approvals for revisions to the Tentative Map in 2013 based on plan revisions made for the SR-11 and border crossing. Approvals include wetland entitlements from the Army Corps of Engineers, California Fish & Wildlife and the Regional Water Quality Board. Grading and infrastructure work for the business park will commence in 2017. Phase I construction for the SR-11 was completed in 2015 and the final two phases will commence in 2017. Kearny will sell land to users and other developers, and develop build-to-suit and speculative projects.
This is Kearny and PCCP’s third investment in Otay Mesa Industrial. Land prices are significantly less expensive in Otay Mesa than in other Southern California industrial markets and, in particular, San Diego County. Kearny recognizes that this relative pricing advantage will be a key driver to the venture’s success. In addition, the Otay Mesa market is poised to take on a new character serving the needs of burgeoning local businesses spurred by the influx of new residences in the nearby communities of Eastlake and Otay Ranch and the opening of the SR 125 and the extension of the 905 freeway.
Architect: Smith Consulting Architects
Civil: Stevens Cresto
EIR: Helix Environmental Planning
Lender: Wells Fargo