Kearny acquired 90 acres in 2005 in the Otay Mesa submarket of San Diego in partnership with Pacific Coast Capital in two separate transactions. Both sites were raw land and involved processing entitlements and completing on and off-site street improvements. The projects will enable development in excess of one million sf with total project costs of approximately $90 million.
Phase I, Britannia Industrial Park, consisted of 39 acres with a tentative map to subdivide the property into 12 parcels and is located on the northeast corner of Britannia Boulevard and Siempre Viva Road. Kearny recorded the final map in December 2006 and completed grading and infrastructure improvements in 2007. 18.8 acres of finished lots were sold to four users and Kearny completed 156,000 sf of spec buildings in July 2008. The development consists of five dock high buildings from 23,000 to 36,000 sf were sold to users in four separate transactions from July 2008 through September 2012. One lot remains available for sale.
Phase II, Siempre Viva Industrial Park is 50 acres, including a 10-acre parcel within a MHPA (Multiple Habitat Protection Area.) Kearny completed a mitigated negative dec and a tentative and final map and sold the property to Dart Industries in 2010, making a profit on the investment.
Land prices are significantly less expensive in Otay Mesa than in other Southern California industrial markets. Kearny recognized this relative pricing advantage. In addition, the Otay Mesa market, which has more than doubled in size since 1998, is poised to take on a new character serving the needs of burgeoning local small businesses spurred by the influx of new residences in the nearby communities of Eastlake and Otay Ranch where 40,000 new homes are planned and the completion of the SR125, the extension of the 905, and the new SR-11 and third border crossing located strategically at Otay Crossing Commerce Park.
“Kearny did what they promised to do. Despite many challenges, Kearny was able to post a non-refundable deposit within 45 days of signing the P&S and close, on time, 30 days later. They were professional in negotiating the transaction and completing their due diligence.”
William Rogers, Seller of Phase I
Architect: Ware Malcomb