SAN DIEGO –– CBRE arranged the $46.3 million sale and leaseback of 5959 Santa Fe Street, an infill and coastal distribution facility in San Diego’s submarket of Pacific Beach and Rose Canyon. The property totals 131,299 sq.-ft. and is directly east of Interstate five (I-5).
CBRE’s Matt Carlson, Hunter Rowe, Sean Williams, Roger Carlson and the company’s National Partners west team members Barbara Perrier and Joe Cesta represented the seller in the transaction. The buyer, LBA Logistics, represented themselves.
Built in 1980, the well-appointed 7.1-acre site has been the primary beverage distribution center for one of the world’s largest brewing companies. Its proximity to the I-5 allows convenient access to all of San Diego County.
“Despite the challenging market dynamics, the sale process was highly competitive with major national and regional players. The depth of bidders is a further testament to the strength of the Central San Diego market and the quality of the asset,” said CBRE’s Carlson.
Central San Diego’s industrial market closed out the third quarter with negative net absorption and, year to date, over 8.7 million sq. ft. of leasing activity. The strong level of overall activity and tenant demand has driven the direct vacancy rate to a near-historic low of 2.0 percent.
“Investor appetite for well-located, quality and infill distribution assets geared for last-mile distribution has never been more robust. Particularly assets near desirable coastal communities where land values have increased exponentially,” said CBRE’s Rowe.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.