Tuesday, May 9, 2017

BLT Enterprises Acquires Flex Industrial Building in San Diego’s Kearny Mesa Submarket for $8.9 Million

Bernard Huberman
SAN DIEGO, Calif., (May 5, 2017) – BLT Enterprises, a multi-faceted commercial real estate investment company, has acquired a 71,862 square-foot, two-story flex industrial building in the Kearny Mesa submarket of San Diego for $8.9 million.

“Kearny Mesa is San Diego’s largest and most dynamic R&D and industrial submarket,” says Bernard Huberman, Founder and President of BLT Enterprises. “The region’s tightening vacancy rates are rapidly driving rent growth, and will continue to increase property values over the next several years. 

"At the end of last year, overall vacancy in this submarket was 2.9-percent, which was the lowest in all of Central San Diego’s R&D and industrial submarkets.”

Huberman explains that this property will continue to benefit from the region’s diverse economy and growing labor pool, making it a strong addition to BLT’s existing San Diego portfolio, which encompasses over 500,000 square feet in the market.

“Kearny Mesa is not reliant on a single industry,” says Huberman. “The submarket boasts diversification that is unmatched by surrounding areas. Healthcare, education, defense, construction, government and consumer products are all staples in the overall fabric of Kearny Mesa, providing long-term stability and demand for our asset over time.”

Mike Meraz
Constructed in 1981, the property was originally a 52,000 square-foot R&D/flex building. In the late 1980s, it was expanded into a two-story office building, adding an additional 20,000 square feet to the property.

“We plan to remove this additional 20,000 square feet of added mezzanine and return the property to its original 52,000 square-foot size,” says Huberman. “The addition of the office space resulted in a 3/1,000 parking ratio, which made it severely under parked. 

"By removing this section, we are able to increase the parking ratio to 4.25/1,000, which will improve the property’s functionality and appeal in the market.”

In addition to removing the mezzanine, BLT Enterprises also plans to integrate a series of improvements that will modernize the property. This includes redone exteriors, new mechanical systems, and employee amenities.

“Our investment platform centers on holding our assets long-term,” says Huberman. “By modernizing the property and increasing parking, we will be able to attract high quality tenants that will deliver long-term value to this asset.”

He adds, “Overall, this acquisition is well-aligned with our strategy to acquire and develop properties in primary growth markets where we can bring value to tenants.”

Ron Jacobson
The property is located at 5454 Ruffin Road in San Diego, California.

Mike Meraz of Magnum Properties and Ron Jacobson of SD Realty Partners represented BLT Enterprises as the buyer in the transaction.

Kerry Schimpf of Commercial Properties Group and Randy LaChance of Voit Real Estate Services represented the seller, Apprentice and Journeymen Training Trust Fund of Southern California Plumbing and Piping Industry.

For a complete copy of the company’s news release, please contact:

Elisabeth Manville/Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940

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