CBRE Facilitates $80.05 Million Sale of a Core Industrial Asset in San Diego

CBRE has arranged the sale of a 202,547-square-foot Class A warehouse and distribution center located at 4400 and 4450 Ruffin Road in the Kearny Mesa submarket of San Diego to CenterPoint Properties for $80.05 million.

CBRE’s Hunter Rowe and Matt Carlson, along with National Partners’ Michael Longo, Eric Cox, Barbara Perrier, Joe Cesta and Brian Russell, represented the seller, a real estate investment and management company, in the transaction.

The newly completed property spans 13 acres, situated near the intersection of Balboa Avenue and Ruffin Road. The asset is fully leased to three high-quality tenants with long-term leases and in-place rents below market. The project features various suite sizes, with a 32-foot clear height, 57 dock-high doors, 11 grade-level doors and 1.6 acres of excess land. The strategic location provides ideal access to the region via Interstate 15 (I-15), I-805, I-5, I-8, State Route 163 (SR-163) and SR-52.

“This was a unique opportunity to acquire a core industrial asset in Central San Diego, one of the most supply-constrained and top-performing submarkets in the region,” said Rowe, first vice president at CBRE. “The Daikin and Pilot leases demonstrate how tenants place significant value on asset quality and location, and the 15 initial offers we received underscore the robust investor demand for core industrial product in San Diego.”

“Many investors today are focused on lower risk assets, as they price through the market volatility. The San Diego logistics market has been more shielded from this volatility than the balance of Southern California, and the Ruffin Road property is best-in-class, in a bullseye location, with great credit tenancy and longer-term leases,” added Longo, senior vice president at CBRE.

According to CBRE research, Kearny Mesa is the most active industrial submarket, with 15.5 million sq. ft. of space. Overall, tenant demand remains strong, while the supply of quality space is near a historic low.