By Jack Stubbs
In early June, a 25-acre industrial land parcel on the border of Otay Mesa and Chula Vista was put on the market for $16.8 million, or around 672,000 per acre. The parcel, located at 5662 Otay Valley Road just northeast of Brown Field Airport, represents an opportunity for a developer to utilize it for industrial or residential uses.
One of the primary draws of the parcel is its multifunctionality within a unique geographic location, according to Commercial Real Estate Specialist Samuel Rubio of Keller Williams Realty, who is marketing the property.
“The property type is unique for several reasons…it has historically been used as industrial, but it’s actually zoned residential. All around [the property] are residential developments, either completed or in progress,” Rubio said. “This is also a unique property because it’s within the border of Chula Vista, which is its own city, not Otay Mesa, which is the jurisdiction of San Diego County.”
One of the highlights of the property is its versatility, according to Rubio, given its potential to add some much-needed housing inventory to the area.
“A buyer can purchase the property and use it as a substation for industrial use, or, as a future development for residential purposes. It’s important because there’s a lack of housing in the area, both senior and general public housing,” he said.
The parcel is just south of Sesame Place San Diego theme park and the North Island Credit Union Amphitheatre, also proximate to SR-905 and I-805. It is also near the United States-Mexico border, providing some potential industrial opportunities.
“The U.S.-Mexico border proximity has created a big boom for industrial progress. The fact that industrial needs to happen, there’s also the question of where these workers will live. So the property is important in both of these aspects,” Rubio explained.
In addition to the parcel at 5662 Otay Valley Road, Chula Vista represents an opportunity to develop a myriad of other projects, with several already underway in the adjacent Otay Mesa.
Earlier this year, Kearny Real Estate Company commenced grading the 26-acre final phase of the 311-acre Otay Crossings Commerce Park in Otay Mesa, at the intersection of Siempre Viva and Paseo Del La Fuente Roads immediately adjacent to the future U.S.-Mexico Point of Entry. The project entails the development of four industrial buildings ranging from 45,000 to 205,500 square feet.
The Otay Mesa industrial market – and San Diego County more generally – is on an upward trajectory.
“The Otay Mesa industrial market has experienced tremendous growth over recent years,” said Jeff Givens, partner, and a member of Kearny’s San Diego office at the time of the announcement. “Market vacancies have hovered around 3 percent and a growing diversified base of users have migrated to the Otay market as the need for Class A industrial facilities has increased across San Diego County.”
In May, a 17-acre industrial development site near the Otay Mesa Port of Entry was put up for purchase in the Southwest Village Specific Plan Area of Otay Mesa. The site is located just east of Interstate 805, south of State Route 905 and west of Caliente Avenue, according to the listing by Pacific Coast Commercial.
