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Developers Break Ground on $120M Border Project Linking San Diego and Tijuana

24 Jul 2014, 3:59 am

By Alex Girda, Associate Editor

After nearly six years of planning, a $120 million project is under way at the border crossing between Tijuana and San Diego. Developers have started work on the Cross Border Xpress, a   a 390-foot-long pedestrian bridge to Tijuana International Airport. The project is the first facility in the United States that connects directly to a foreign airport terminal. Otay Tijuana Ventures L.L.C., an entity backed by investors from the U.S. and Mexico, is the developer and operator.

Plans call for a 95,000-square-foot project, of which 65,000 square feet will be designated as indoor and outdoor patio area. The property will offer retail, food and beverages, bilingual customer service, and both short-term and long-term parking. Cross Border Xpress will be enclosed with divided north/south corridors.

According to Jerry Sanders, President & CEO of the San Diego Regional Chamber of Commerce, the project aims to remedy border crossing delays and wait times that have produced “a real and tangible impact on the economy of our region, as well as our quality of life.”

Serving nearly 2.4 million passengers, the bridge will ease congestion at the San Ysidro and Otay Mesa land ports of entry. Cross Border Xpress will also provide travelers with access to the 30 routes available at Tijuana International Airport. Backers say that the project will boost Tijuana’s industrial, tourism and commercial platform while consolidating its position as a Maquiladora destination.

The developers sourced construction financing from Bancomext and Invex. On the San Diego side, Turner Construction and Hazard Construction will handle construction, while the Tijuana end will be  carried out by Grumesa S.A. de C.V.  Legoretta + Legoretta is the project’s architect.

San Diego Submarkets Continue Strong Showing as Office, Industrial and M-F Assets Trade

17 Jul 2014, 2:51 pm

By Alex Girda, Associate Editor

Although the number of blockbuster sales is relatively modest in metropolitan San Diego, its submarkets are generating a steady stream of transactions. An office campus in Del Mar Heights, an industrial asset in Otay Mesa and a multifamily complex in Imperial Beach all traded hands this week, underlining the market’s appeal to expansion-minded occupants and to investors.

Houston-based Lionstone Investments acquired Torrey Reserve West, a three-building office campus in Del Mar Heights. The two-story buildings total 118,030 square feet of space , as well as surface and structured parking.

The property was about 90 percent occupied at the time of the transaction, outperforming the market average. With asking rents on the rise, Lionstone will look to further boost occupancy. Del Mar Heights is one of the county’s best- performing submarkets, currently featuring the highest rental rates in the area.

The industrial deal was completed by Niceride 1 L.L.C., which paid  JJB Silverhawk and VCH No. 1 about $8.15 million for an asset in Otay Mesa. The deal was brokered by  Cassidy Turley. Located in the master-planned Siempre Viva Business Park at 8851-8877 Kerns St., the building totals 115,290 square feet. The building will become the new corporate headquarters of Otay Mesa Leasing, which signed a 10-year lease. The company supplies construction and industrial equipment in Southern California and Mexico.

On the residential front, Kruetzkamp Family Trust recently acquired the Century Arms Apartments in Imperial Beach for $3.6 million. The 22,800-square foot asset, which is fully occupied, includes 14 one-bedroom units and 16 two-bedroom apartments. Built in 1977, the asset is located at 1471 13th St. in Imperial Beach. The deal was arranged by Colliers International on behalf of the buyer and the seller, Kromydas Family Trust.

HCP Buys Torrey Pines R&D Building; Ariel Suites Announces Trio of Commercial Tenants

10 Jul 2014, 4:31 am

By Alex Girda, Associate Editor

San Diego’s real estate market has once again recorded an active week. Health Care Properties Inc. recently paid $43.7 million to Angelo, Gordon & Co. for a Torrey Pines research and development office property. The deal was arranged by CBRE Group Inc. representatives Ryan Egli and Hunter Rowe, The San Diego Business Journal reports.

Located at 11099 N. Torrey Pines Road in Torrey Pines Science Park, the building offers 92,479 square feet of office space. At the time of the transaction, the property was around 93 percent under contract. The building’s tenant roster features names such as DermTech International, Amicus Therapeutics Inc., COI Pharmaceuticals Inc. and Monsanto LLC.

Meanwhile, at the corner of Beech Street and Kettner Boulevard in San Diego, the Ariel Suites apartment tower is taking shape. Scheduled for completion next year, the 22-story residential tower designed by AVRP Studio has reportedly secured three tenants for its commercial space.

Mexiterranean Hospitality L.L.C. has leased 4,650 square feet of space for ten years for a restaurant featuring Baja Mediterranean-style cuisine, while Pan Bon, a bi-level restaurant, will occupy 6,500 square feet for its wholesale operations. The third retail tenant, a Hanson’s Market organic grocery, will take 8,500 square feet.  

Image courtesy of avrpstudios.com

Scripps Memorial Hospital Encinitas Unveils $94M Expansion

3 Jul 2014, 2:15 am

By Alex Girda, Associate Editor

Scripps Memorial Hospital Encinitas in North County recently marked the completion of $94 million expansion on July 1 with the grand opening of the Leichtag Foundation Critical Care Pavilion. The project added a the new emergency department and inpatient rooms along with other improvements. The new facility is named after Leichtag Foundation, a local philanthropic organization and key contributor to the project.

As part of the expansion, the hospital is adding the 72,321-square-foot Leichtag Foundation Critical Care Pavilion, as well as a new central energy plant, new medical imaging technology and various infrastructure improvements on the premises.

The new building’s first floor includes a 26-bed emergency department, with all private rooms. Two rooms double as resuscitation facilities, and four can serve as isolation rooms for patients with suspected airborne illnesses.

The second floor features 36 private recovery rooms  that will help cut patient waiting times in the emergency department. New imaging technology made available at the facility includes MRI, CT scanning and digital diagnostic X-ray units.

The first phase of the expansion of Scripps Encinitas included the development of 884-space parking facility that was completed in 2011. The recently completed second phase also includes $6 million in public infrastructure improvements.

Image courtesy of scripps.org

DRA, Cypress Pay $41M for Sorrento Mesa Office Portfolio; NBC 7 Seals Move to Kearny Mesa

26 Jun 2014, 3:29 pm

By Alex Girda, Associate Editor

In yet another busy week for San Diego office investment market, details emerged of two deals totaling $50 million in value.

In the larger of the two transactions,  DRA Advisors L.L.C. and Cypress Office Properties L. L.C. acquired four properties in the Sorrento Mesa submarket from TA Associates Realty for about $41 million.  The properties total 190,200 square feet of office space, all of it under contract.

Included in the portfolio are 5910 Pacific Center (three stories, 50,900 square feet);  Pacific Heights Plaza (two stories, 51,000 square feet); and 10020 and 9980 Huennekens Street (88,000 square feet). The new owners plan upgrades to such elements as common areas to further boost the assets’ position in the Sorrento Mesa submarket.  Cassidy Turley Executive Managing Director Rick Reeder and Managing Director Brad Tecca arranged the transaction on behalf of the seller, rentv.com reports.

Also announced last week was the $9.6 million sale of 9680 Granite Ridge Drive in Kearny Mesa to KNSD Granite Ridge L.L.C., an affiliate of NBC 7 San Diego. The 52,347-square-foot building (pictured at right) will become the station’s new headquarters in 2016 after it leaves its current home at 225 Broadway in downtown San Diego.

The  building will provide studio and administrative facilities for the station, which will occupy the space after improvements are complete, according to a statement. Colliers International arranged the acquisition for the buyer.

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