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 purchased as 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 from 1.5 to 5.7 acres and is located
on the northeast corner of Britannia Boulevard and
Siempre Viva Road, two primary arterials. Kearny
recorded the final map in December 2006 and
completed grading and infrastructure improvements in
2007. Activity has been strong with 18.8 acres sold
to four users. Kearny completed construction of
156,000 sf of spec development in July 2008. The
development consists of five dock high industrial
buildings from 23,000 to 36,000 sf. Three buildings
have been sold with two available. One lot remains
available for sale.
Phase II, Siempre Viva Industrial Park is 50 acres,
including a 10-acre parcel located within a MHPA.
Kearny completed a mitigated negative dec and
processed a tentative and final map thru the
approval process to subdivide the site into small
lots 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 and, in particular, San Diego County. 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 Crossings
Commerce Park.
"Kearny did what they promised to do. Despite
many challenges to the site, 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
Civil: Kimley-Horn
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