First Industrial Realty Trust has acquired a 424,766 sq. ft. distribution center and 19 acres of land in the San Diego suburb of Kearny Mesa. The purchase price was $77 million.
“Kearny Mesa is a highly-desirable investment sub-market in the San Diego area,” says broker Rick Putnam of Cushman & Wakefield. “Vacancies are low, new industrial development is constrained and rents are projected to escalate faster than in surrounding sub-markets. This building will uniquely benefit from those dynamics given its size, tremendous location and excellent functionality for central San Diego tenants,” says Putnam.
Putnam and Jeffrey Cole in Cushman & Wakefield’s Southern California Capital Markets Group represented the seller, a fund advised by DRA Advisors LLC. The New York-based fund advisor specializes in real estate investment and management services for institutional and private investors. Landmark Asset Management Group was DRA's operating partner and property manager. Burnham Real Estate’s Mickey Morera and James Duncan were also on the marketing team.
The property at 4000 Ruffin Road in Kearny Mesa was 100% occupied at the time of sale by tenants that include Sharp Healthcare, Cal-State Auto Parts and Alexander’s Mobility Services. The site is less than eight miles from the San Diego Airport. The structure, which was built in two phases in 1979 and 1980, is the largest facility of its kind in Kearny Mesa.