SAN DIEGO, Calif. – September 13, 2018 – Mira Mesa Distribution Center, a 293,800-square-foot multi-building distribution park in San Diego, California, has been acquired by Orange County-based Sukut Real Properties. The multi-tenant industrial project is located in the heart of the Sorrento Mesa submarket and was sold by The Sickels Group. The Center resides on a ground lease, which has approximately 68 years remaining.
Capital Markets brokerage specialists Bryce Aberg, Jeff Chiate, Jeffrey Cole, and Ed Hernandez with Cushman & Wakefield’s offices in San Diego and Orange County represented the seller in the transaction, along with brokers Dean Asaro and Brant Aberg also of the firm in San Diego serving as market advisors.
Bryce Aberg, Executive Director, said, “Mira Mesa Distribution Center was a rare opportunity to acquire a sizable multi-tenant distribution project optimally positioned in the innovative Sorrento Mesa submarket, which due to its strong industrial profile makes it one of the most desirable investment markets in Southern California.” He added, “While Sorrento Mesa is primarily well known for its high quality flex/R&D space, owners of distribution space benefit from the need of distributors to be close to the technology and communication companies in the area. This favorable location creates the opportunity for excellent synergy among businesses.”
He added, “The project itself is fully leased to a strong and highly diversified mix of 10 national and international tenants, together providing stable in-place income with attractive lease terms and a well-balanced tenant rollover profile.”
Mira Mesa Distribution Center consists of three buildings located 5960 Pacific Mesa Ct, and 5985 & 5995 Pacific Center Blvd. Developed in 1989, the project features classic designs with flexible divisibility options, efficient warehouse and office layouts, dock and grade loading, great ingress/egress, and competitive parking. Additionally, Mira Mesa Distribution Center is conveniently located near Interstates 5, 805 and 15 providing access throughout the county, including to San Diego International Airport and the Port of San Diego.
According to Cushman & Wakefield, direct industrial vacancy in Sorrento Mesa was a healthy 4.7% as of midyear 2018, while countywide direct vacancy in San Diego stood at just 4.1%. Bryce noted, “San Diego continues to experience high industrial tenant demand and strong rental rate growth which is further advantageous to this property’s future as an investment.”