JLL Income Property Trust Buys Two-Building Industrial Portfolio in San Diego Area for $36.3MM

JLL Income Property Trust, San Diego, Poway, San Marcos, NEOTech, Poway Business Park, Bixby Land Company, Cushman & Wakefield
13500 Danielson. Courtesy of Bixby Land Company.

By Meghan Hall

San Diego industrial properties are continuing to trade hands as demand for warehouse and manufacturing space continues to surge. In another third quarter property transaction, JLL Income Property Trust acquired two San Diego-area industrial assets for a combined $36.3 million, according to industry reports. In both cases, the seller was Bixby Land Company.

The properties are located at 13500 Danielson and 237 Via Vera Cruz in Poway and San Marcos, respectively. 13500 Danielson is an industrial and manufacturing building located in the Poway Business Park. According to Bixby’s website, the asset totals 72,600 square feet and sits on 6.42 acres. The building offers six loading doors, ample parking and 100 percent HVAC. It is currently leased to a single tenant.

237 Via Vera Cruz is characterized as an industrial and corporate headquarters asset, leased to a single-tenant, NEOTech. The 80,257 square foot building sits on 5.63 acres and is comprised of 34 percent office. The remainder of the building is a climate controlled warehouse with loading docks, and 24-foot clearance heights. 

Prior to JLL Income Property Trust’s acquisition, 237 Via Vera Cruz was last sold in 2008, when Bixby acquired the property for $14.8 million, according to public records. Bixby also acquired 13500 Danielson in the same year, paying $12.3 million for the Poway asset.

As economic fundamentals improve, investor appetite for commercial real estate assets is returning. In San Diego, the unemployment market has recovered about 57 percent of the 248,000 jobs lost during the pandemic. Industrial assets in particular have fared well, with vacancy in San Diego sitting at 2.6 percent, marking the lowest vacancy rate ever recorded, based on data from Cushman & Wakefield. Tenants absorbed about four million square feet during the third quarter.

Countywide, rents sat at $1.21 per square foot per month on a triple net basis, an increase of 7.1 percent from a year ago. Increased commercial real estate activity is expected through the end of year, and active tenant requirements remain robust. Cushman & Wakefield estimates that there will be 4.4 million square feet of tenant requirements over the next 24 months, countywide. Many of these tenants are those that initially paused big decisions as a result of COVID-19, and thus are returning to the market.