The two industrial buildings that comprise Brown Field Tech Park I have been acquired by Hines from Murphy Development Co.
Tuesday, June 14, 2022
Daily Transcript Staff Report
Hines has acquired a pair of Class A industrial buildings at Brown Field Technology Park in Otay Mesa from Murphy Development Co. for an undisclosed price.
The buildings total 229,680 square feet and are located at 7255 Otay Mesa Road and 1695 Continental Street.
Hines acquired the buildings on behalf of the Hines U.S. Property Partners Fund, the firm’s flagship commingled U.S. core plus fund. The fund is also under contract to acquire an additional two buildings at Brown Field Technology Park, totaling 203,244 square feet, with construction completion scheduled for the second quarter of 2023, according to the brokerage firm JLL.
“With continued growth of ecommerce, onshoring and tight industrial markets, we saw very strong demand from users and investors for Brown Field Technology Park (BFTP),” Murphy Development Co. President Kaitlin M. Arduino said in a statement. “We will continue to deliver premier industrial buildings at BFTP as interest in South San Diego County near the border grows.”
Murphy Development was represented by JLL’s Andy Irwin, Joe Anderson and Greg Lewis, along with Cushman & Wakefield’s Jeff Chiate, Bryce Aberg, Jeff Cole, Mike Adey, and Zach Harman. Cushman & Wakefield’s Brant Aberg, as well as JLL’s Irwin and Anderson, provided leasing advisory services.
The buildings, which are 105,457 square feet and 124,223 square feet in size, respectively, both feature 32-foot clear heights, 4,000 amps of 277 /480 volt power, manufacturing sewer and water capacity, ESFR sprinklers, concrete truck courts, wide column spacing, and high dock door ratios designed for distribution users.
They are situated on a combined 13.5 acres and strategically located on State Route 905 at the Britannia Boulevard diamond interchange.
“The portfolio is a significant block of state-of-the-art Class A industrial product offering strong value-add potential,” said Chiate, an executive vice chairman with Cushman & Wakefield. “Otay Mesa’s robust market fundamentals, together with the portfolio’s exceptional asset quality, main and main locations, and financial profile, created a premier investment opportunity in one of San Diego’s most sought-after submarkets.”
Murphy Development Company (MDC) announced that it has sold two industrial buildings, Building A, a 105,457-square-foot building, and Building C, a 124,223-square-foot building, at Brown Field Technology Park
BFTP is a 52-acre corporate industrial and office park adjacent to Brown Field Airport and positioned within a U.S. Department of Commerce Foreign Trade Zone, which offers important tax incentives for companies. Its flexible design allows for industrial, research and development, office, manufacturing and corporate engineering buildings.
JLL’s Irwin, Anderson and Lewis continue to oversee leasing at BFTP’s other buildings.
“The Otay Mesa industrial submarket was the strongest in the county in the first quarter with over 770,000 square feet of positive absorption and a vacancy of historic low vacancy of 2.3 percent,” Irwin said. “Nearshoring to Mexico and a meteoric rise in rents in the adjacent Southern California industrial markets has attracted ecommerce, logistics, warehousing, and manufacturing to this submarket.”
Cushman & Wakefield’s Bryce Aberg said the two-building portfolio’s location provides regional, national and international access with its proximity to the border, multiple freeways and several airports.
“Such accessibility is very difficult to replicate and greatly elevates the appeal of this portfolio for tenants and owners,” he said.
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