Done Deals: Phelan Development Acquires 25 Acres of Industrial Land in San Diego, CA for $11.5 Million

Friday, January 15, 2021

Phelan Development Acquires 25 Acres of Industrial Land in San Diego, CA for $11.5 Million

Mike DeArmey

SAN DIEGO, CA – JLL announced that Phelan Development has paid $11.5 million for a 25-acre parcel of land in San Diego, California.

The land is expected to receive full entitlements in the first quarter of 2021 with construction slated to commence in the second quarter of 2021.

Phelan Development will begin development on a six building, 400,000-square-foot industrial park. Buildings will range in size from 35,000 square feet to 135,000-square feet and will be available for lease or sale.

Andy Irwin

The buildings offer state of the art features including ESFR sprinklers, 32-foot to 36-foot warehouse clearance, high dock door counts and energy efficient designs. Development is scheduled to be completed in the first quarter of 2021.

“Phelan Development Company is excited to enter the Otay Mesa market with this purchase,” said Mike DeArmey of Phelan Development.

“Otay Mesa has become one of the most dynamic markets in San Diego County and we look forward to bringing Class A industrial product to the market for lease and sale.“

Joe Anderson

JLL’s Andy Irwin, Joe Anderson, Ryan Spradling and Greg Lewis represented the seller, Sunwood in the transaction.

They have also been retained to market the buildings for lease or sale. Phelan Development represented themselves in the transaction.

"With COVID and the continued growth of ecommerce, we have seen a surge in demand for industrial space in San Diego County," said Andy Irwin, JLL Vice President. "Unfortunately, we have limited supply with vacancy at 4.6 percent as of the third quarter of this year.”

Ryan Spradling

The site is located at the northwest corner of the SR-125 and SR 905 interchange on Otay Mesa Road providing excellent access to the rest of the San Diego with close proximity to the I-805 and I-5 freeways.

Sitting just 2.5 miles from the international commercial border crossing with over $45 billion in annual flow of goods, businesses will be able to leverage the location to accommodate the growing cross border activity.

It is also home to the highest concentration of Fortune 500 companies in San Diego, offering both the lowest occupancy costs and the best access to labor in the region.