KKR / AIP Acquires Property in One of San Diego’s Most Desired Investment Markets
SAN DIEGO, Calif., June 10, 2019 – Cushman & Wakefield has advised Stos Partners in the disposition of the Brandywine Distribution Center in San Diego, California for $24.4 million. Brandywine Distribution Center is a two-building, 170,011-square-foot (sf) Class A multi-tenant project situated in San Diego’s South County. The buyer was a partnership of New York-based KKR and Chicago-based Alpha Industrial Properties (AIP).
Capital Markets experts Bryce Aberg, SIOR, Jeff Chiate, Jeffrey Cole, Ed Hernandez, Mike Adey, and Zach Harman of Cushman & Wakefield’s San Diego and Orange County offices represented the seller in the transaction. The firm’s Ryan Spradling and Brant Aberg, SIOR also provided local market advisory.
Executive Managing Director Bryce Aberg said, “Brandywine Distribution Center is a best in class, multi-tenant distribution project in an industrial-centric submarket.” He added, “The project is leased to a highly diversified tenant mix catering to defense contractors and regional and local companies, providing stable in-place income with attractive lease terms and a well-balanced tenant rollover profile. That, combined with being in a high demand market with strong rent growth potential, presented a rare opportunity to acquire a sizable multi-tenant industrial portfolio in Chula Vista, one of the most desirable investment markets in San Diego.”
He continued, “While continuing to improve infrastructure, Chula Vista will also very soon be expanding its residential and retail amenity base making it even more appealing from a corporate and real estate standpoint. Furthermore, land costs are on the rise while developable parcels are at a premium.”
Located at 1670 & 1690 Brandywine Ave., the project is comprised of two distribution buildings on 9.84 acres originally built in the late 1980s. Key tenants in the project include SolarCity, Tecnico, Curbell Plastics, and Surgical Specialties. The portfolio features well designed ingress/egress, efficient warehouse and office configurations, dock & grade loading and ample parking. Additionally, the property is desirably located in the heart of Chula Vista near Interstates 5 and 805 and State Route 905, providing great regional access. It is also positioned near the U.S./Mexico border, one of the world’s busiest land border crossings.
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