Mid-City Industrial Building Fetches $15.8M
An 83,500 SF San Diego industrial building, with 27,200 SF of mezzanine space, has sold to Realterm Logistics, a vertically integrated owner/manager of high flow-through, for $16.8M. The building is on a 3.1-acre site at 2727 Kurtz St.
Five years remain on the lease of an unnamed tenant that fully occupies the property and has invested more than $1.5M of its own capital in improving the building. The 1978 building was renovated by the seller, RAF Pacifica Group/Stos Partners, in 2015. The property is in the center of the Midway Pacific Community Plan, a new city development with an array of unique districts connected through a system of pedestrian and bicycle boulevards and green streets that link to Mission Bay, the San Diego River and the San Diego Bay. The property is near the I-5 freeway, Downtown SD and the International San Diego Airport.
“There was a tremendous amount of interest in this property given the location of the asset,” CBRE EVP Gary Stache, of CBRE Investment Properties-Southern California, says. ”We received premium pricing, as seen in the 4.71% cap rate and value of $195/SF.“
“The IPSOCAL team was able to generate tremendous activity for the property and ultimately found a buyer who paid premium price, went non-refundable and closed within 30 days,” says Adam Robinson, principal of RAF Pacifica Group. Adam is among the local developers presenting at our Annual San Diego Construction & Development Forum on July 28.
Gary, along with CBRE VP Matt Pourcho, SVP Anthony DeLorenzo and transaction manager Doug Mack repped the seller. The buyer was repped by an outside broker.