By Lilly Riddle
A 3.91-acre in-fill industrial outdoor storage site in Miramar, San Diego, has been listed for sale with an asking price of $23.7 million, or roughly $139 per square foot, according to a marketing brochure from Colliers The property, located at 9285 Dowdy Dr., is 100 percent leased to San Diego Gas & Electric, a subsidiary of Sempra Energy and a Fortune 285 company.
The property, owned by an entity that shares an address with Lincoln Properties, is located in a mission-critical operations hub for San Diego Gas & Electric, with direct access to both the I-805 and I-15 freeways. It is also adjacent to San Diego’s Fortune 500 and Life Science Epicenter, home to companies like Google, Apple, Amazon, Sony, Qualcomm, Pfizer, Johnson & Johnson and FedEx.
The site is currently occupied by a 6,500-square-foot field office, which San Diego Gas & Electric is investing approximately $1 million to fence, secure and improve. The property offers a first-year capitalization rate of 5.75 percent and a net operating income of $1.4 million. The capitalization rate is projected to increase to 6.53 percent by year five, according to the brochure, with a net operating income of $1.5 million. The property also benefits from annual rent increases of 3.25 percent.
The Miramar industrial market is one of the tightest submarkets in Central San Diego, with a current vacancy rate of 3.5 percent and a five-year average of 2.4 percent, according to the brochure. The market is comprised of approximately 14.4 million square feet, representing just over 22 percent of the Central San Diego industrial market.
The property is located in a highly accessible, amenity-rich area, in close proximity to several large retail centers including Westfield UTC and Mira Mesa Marketplace.
It is also situated in San Diego’s largest growth corridor due to several new local developments. One is the 3Roots and Stone Creek Development, the largest development in Central San Diego, which will consist of 7,300 new residential units and 1.2 million square feet of commercial space, as well as 150 room hotels, parks and open space. Another is The Watermark, which combines 445,000 square feet of Class A office space with another 335,000 square feet of shopping, dining, entertainment and hotel space. The property is also near The Hub at Scripps Ranch, a mixed-use redevelopment on a 9.5-acre site that includes 260 luxury apartments and 10,700 square feet of commercial retail space.
Matt Pourcho, Anthony DeLorenzo, Matt Harris, Casey Stark, Matt Carison, Hunter Rowe, Kyle Wilson and Evan McDonald of Colliers are leading the marketing efforts for this property.
