A 5.8-acre parcel across from the San Diego shipyards just south of the Coronado Bridge
A 5.8-acre parcel across from the San Diego shipyards just south of the Coronado Bridge was sold twice on the same day earlier this month, according to public records.
The property at 2201-2301 Main Street, which border Harbor Drive, has been used by BAE Systems as a parking lot.
It was first sold on Dec. 6 by San Diego California Properties, with Arthur Engel as authorized signatory, for $25.95 million to Encinitas-based Stos Partners.
San Diego California Properties was represented by Linda Greenberg of Lee & Associates while Stos Partners was represented by Chris Holder and Mark Lewkowitz of Colliers International.
Immediately after Stos acquired the property, the firm turned around and sold the parcel for $26.47 million to an entity known as Bcore Main St SD Owner LLC, which is located in Chicago.
Both sales were reportedly all-cash transactions.
The property was sold without any approvals or permits in place, and there are no formal development plans at the moment, according to CoStar.
Lee & Associates' broker Greenberg noted that the sale prices were so high that "it would appear to indicate the buyers bought the property for a specific purpose."
Greenberg said there are all kinds of possibilities for the property given its location across Harbor Drive from the shipyards.
"Every year the number of homeported ships goes up," she said.
Citing statistics from the San Diego Military Affairs Council, Greenberg said there were 49 homeported Navy ships in 2015. This is projected to climb to 65 ships next year.
Holder, the broker from Colliers, said as far as he knows, there are no immediate plans to develop the property. As for what might be built on the property, there is no single answer.
Holder said potential uses could include a parking garage to serve the shipyards, a warehouse or some sort of a mixed-use development.
A proposal for a parking garage on the property is nothing new. In November 2011, the San Diego Unified Port District commissioned a study by Kimley Horn & Associates to determine where a new parking structure might go either on or, in this case, just off port tidelands. This property is just across Harbor Drive from Port property.
At the time of the 2011 report, there were nearly 4,000 off-street parking spaces designated for shipyard employees, including NASSCO, BAE Systems, CMSD, and CP Kelco.
The BAE lot site, also known as Parking Structure Site 2, is an existing surface parking lot located between the railroad tracks and Main Street. It extends from Sampson Street southward to Schley and 26th Streets. The lot currently supplies approximately 825 parking spaces.
"As such, in order to meet the parking demand projections, a parking structure on this site would need to include a total of 2,949 spaces," the Kimley Horn report stated. "The southern edge of this site is just outside the 1,800-foot walking radius from NASSCO with the majority of the lot more than 2,000 feet away."
Other issues were cited that might keep this property from being a parking garage.
"This lot has utility easements spread throughout the lot which would limit development of a parking structure," Kimley Horn wrote at the time.
Even though there was a second sale, both Greenberg and Holder emphasized that Stos will be developing the property.
The Main Street property wasn't always a surface parking lot. It was both the site of the old Aztec Brewery, and the location of a Bandag business. That company may be best known for retreading truck tires.
CoStar said BAE Systems has one year remaining on its lease, and that it didn't expect the lease to be renewed.
Stos Partners could be identified as a small- to mid-size commercial/industrial investor and developer, but nevertheless has managed to invest in $600 million in projects to date. Its investment total in 2019 had reached in excess of $55.5 million as of September. The firm will invest anywhere from $1 million to $100 million in any given project.
Some of Stos' acquired assets and projects have included the 157,269-square-foot Elevate at Carlsbad Oaks North, three industrial buildings totaling 226,220 square feet in the 3800-block of Ocean Ranch Boulevard in Oceanside, and a 128,531-square-foot industrial building at 2611 Business Park Drive in Vista.