CBRE Arranges $14.5 Million Sale of Two Infill Industrial Buildings in San Diego

CBRE, on behalf of the San Diego Association of Governments (SANDAG), facilitated the sale of two freestanding industrial buildings at 5965 and 5975 Santa Fe Street in San Diego, Calif., to Parallel Capital Partners for $14.5 million.

CBRE's Matt Carlson, Hunter Rowe, Camille Doan, Brian Hutcherson, Barbara Perrier, Mike Longo, Joe Cesta and Eric Cox advised the sellers on the transaction.

The transaction is the first time the building has been available on the open market.

"The opportunity to reinvigorate and rebrand the well-located industrial product, particularly in the smaller bay space, is highly desirable and what capital is aggressively pursuing in San Diego," said Rowe, first vice president at CBRE.

Situated on 4.17 acres in the Rose Canyon industrial submarket of San Diego, the rare infill and coastal industrial project was vacant at the close of escrow. Karl Strauss Brewing Company and SANDAG previously occupied the property.

SANDAG acquired the assets in 2017 with Federal Transit Administration funding participation to help facilitate the Mid-Coast Trolley extension construction project, which connects UTC with the Santa Fe Depot in downtown San Diego.

Built in the 1980s, the two buildings total 72,769 sq. ft. The property's location runs parallel to Interstate 5 (I-5) and provides convenient access to Highway 52 and some of the region's most affluent communities.

According to CBRE research, the Rose Canyon submarket (which includes Pacific Beach and Morena) in Central San Diego has a historically low vacancy rate of 1.7% and no current new construction.