Kearny Real Estate

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Otay Crossings Commerce Park

Kearny acquired 311 acres in May 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 horizontal development including on and off-site improvements. The partnership has acquired 229 acres of biological habitat for offsite mitigation. The project will enable development of approximately three million sf with project costs of approximately $400 million. The 311 acres has a tentative right-of-way reservation of 130 acres for the future SR-11 (1.8 mile extension off the 905 running southeast to the Mexican border) and a new international border crossing. The Kearny professionals are using their experience to bring the Federal Government, the Mexican Government, 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 border crossing. Kearny anticipates that the entitlements will be completed in three years. Grading and infrastructure work will commence thereafter. 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: TBD Civil: Stevens Cresto EIR: Helix Environmental Planning Lender: Wells Fargo