The deal marks a record price per square foot in San Diego East County
San Diego – CBRE has announced the $5 million sale of two industrial buildings in Santee, Calif., to a high net-worth 1031-exchange buyer based in Los Angeles.
The sale represents a record for San Diego's East County at $250 per square foot, the highest price for properties above 20,000 square feet in the submarket.
CBRE’s Matt Pourcho, Matt Harris, Gary Stache, Anthony DeLorenzo, Doug Mack and Bryan Johnson with CBRE represented the seller, The Grant Companies. The CBRE team was brought in by the local East County team James Renner and Chris Nelson of Inland Pacific.
The 20,030-square-foot property is located at 8510-8520 Railroad Avenue, half a mile from the 52 and 67 freeways and near Santee’s largest retail centers. The building at 8510 Railroad Avenue is occupied by the Federal Aviation Administration, Development Contractor Inc., and Western Footprint Corporation. The property at 8520 Railroad Avenue is occupied by COIT Cleaning and Restoration.
“This asset received strong interest and multiple offers because of the strategic, highly accessible, amenity-rich location coupled with a strong tenant roster and good market fundamentals,” said Stache.
Industrial buildings less than 30,000 square-feet in size in East County have historically maintained very low vacancy rates, evidenced by a 10-year average vacancy rate of 2.94 percent and of 1.47 percent over the past three years, according to CBRE research. High demand for 20,000 square-foot comparable buildings have pushed the vacancy rate for industrial buildings between 15,000 square feet and 25,000-square feet to a mere 0.9 percent.
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 2020 revenue). The company has more than 100,000 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. Please visit our website at www.cbre.com.
