Dalfen Industrial announced the acquisition of Otay South Logistics Center in San Diego, CA. The building was purchased as a sales leaseback from Royal Flavor, a wholesale produce company, who occupies 100% of the property. This marks Dalfen’s second acquisition in Otay Mesa over the last sixty days.
Otay South Logistics Center is a 66,243 square foot industrial property located in the Otay Mesa submarket of San Diego. Built in 2000, the rear-load property features 24′ clear heights, a 128′ truck court and 14 dock-high doors. Notable tenants in the area include companies like Fedex, Amazon, Kraft, Honeywell, Bose, Panasonic and Costco.
The property is situated ±1 mile from the 905 freeway, which provides access to both I-5 and I-805 freeways to the west as well as SR-125 and the Otay Mesa Port of Entry to the east. Proximity to the Otay Mesa Port of Entry, the largest commercial land port of entry, and the trade zone are distinct attractions to the area allowing tenants to move product over the border efficiently and realize significant savings, and serves as reliable source of labor. The property is also within 5 miles of the Tijuana Airport, 20 miles from the Port of San Diego, 25 miles from the San Diego International Airport, and near both rail and train transportation.
“Dalfen’s acquisition of Otay South Logistics Center provides another last mile location to service San Diego’s 3.3 million people,” said Rich Weiss, Market Officer at Dalfen in a statement. “With a mere 10 miles from the coastline to the mountains, San Diego is highly supply constrained and in conjunction with strong and unique demand drivers fosters very favorable market conditions. We will continue to target building and land acquisitions throughout the metro.”
“This acquisition exemplifies our continued focus of adding strategically located west coast industrial assets to our portfolio in order to bolster our last mile fulfillment center footprint in the region,” said Sean Dalfen, President and Chief Investment Officer at Dalfen Industrial. Over the past 12 months between development and acquisitions, Dalfen Industrial has added over $1.2 billion worth of assets to its portfolio on the west coast.
