Source: The Smart Agency
AUGUST 21, 2024
Deal closes at $12.1M; Seller to remain onsite via leaseback through 2025
SAN DIEGO, Calif., (August 21, 2024) – In a deal that will transform a Class A office headquarters into a much-needed strategically located industrial outdoor storage (IOS) property in Central San Diego County, a joint venture between RPG and Steel Peak acquired 9606 Aero Drive, a 38,704 square foot flex-office property on 4.27 acres of industrial land zoned for outdoor storage. Total consideration for the acquisition was $12.1 million, supported by the JV’s institutional equity partner.
The seller will stay in their headquarters as part of a leaseback agreement through 2025. In addition to the existing office space, which is highly amenitized and LEED certified, the site includes a vacated data center that will be converted into warehouse space with multiple grade-level loading doors, creating a class-A IOS facility that will be ideal for industrial services businesses, building material suppliers, electric vehicle companies, or construction related businesses, according to Adam Robinson, Founder and President of RPG.
“There are no industrial outdoor storage facilities in this size range available in the Central San Diego area that have a functional warehouse building with heavy industrial zoning that allows for outdoor storage by right. For IOS tenants, this is a class- A location in San Diego due to the easy access to multiple major freeways.” says Blake Rodgers, Co-Founder and Principal of Steel Peak. “There are multiple companies that will be interested in such a functional IOS facility with a large yard for outdoor storage once it becomes available, and through the leaseback we’ll have steady cashflow in the meantime.”
Conversions into industrial have become a popular solution for depreciating office spaces, which have been falling in demand since the pandemic. A Newmark report found last year that 15.2 million square feet of offices nationwide had been converted to industrial use, a 33.7 percent increase in just two years.
“Transitioning this site, which is already zoned for heavy industrial, makes a lot of sense given the steady tenant demand and market tailwinds in the industrial outdoor storage asset class,” says Pasha Johnson, Steel Peak Co-Founder and Principal. “We want to thank Collier’s Kurtis Blanchard and Evan McDonald, our brokers that represented us in this transaction.”
Robinson shared that some of the value-add improvements will include construction of a warehouse as well as fencing, lighting, and paving. However, he added that it’s the site’s location on Aero Drive, which serves as a major thoroughfare connecting Interstate 15 to the Interstate 805 and State Route 163 interchange, and its heavy power that produces 2,000 AMPs / 480 Volts that make the property a unique asset.
About RPG
RPG is a privately held, full-service commercial real estate investment firm that acquires, owns, and develops industrial, office, multi-family, mixed-use and retail properties throughout San Diego County. The firm is spearheaded by Adam Robinson who has directed the firm’s acquisition and development of over 5.6 million square feet and over $3 billion in commercial properties.
The firm continues to actively seek value-add investment and ground-up development opportunities in Southern California. For more information, visit www.rafpg.com.
About Steel Peak
Steel Peak is a Southern California-based real estate investment firm that specializes in providing real estate solutions for heavy industrial services in major markets throughout the Western U.S. Steel Peak’s relationship-driven investment strategy focuses on sourcing hidden opportunities that create value for its tenants and investors. Steel Peak seeks to acquire IOS investment opportunities with capitalized values ranging from $5 million to $50 million. The firm invests directly and in partnership with institutional and high net-worth investors. For more information, visit www.steelpeakproperties.com.
All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner of will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.
Keywords: San Diego Commercial Real Estate For Sale, Commercial Property In San Diego, Commercial Real Estate In San Diego, San Diego Investment Real Estate, Commercial Property Management In San Diego, San Diego Commercial Property Management, Commercial Property Management San Diego, Managed Commercial Property San Diego, Commercial Property For Sale San Diego, San Diego Commercial Real Estate Leasing, Top Real Estate Agents in San Diego, Commercial Property in San Diego, Property Management Company San Diego, Real Estate Agent in San Diego, San Diego Commercial Real Estate Real Estate Agent Contact Us Brokerage, Property Management Commercial Real Estate Agency in San Diego San Diego Commercial Property Management
Comments