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Carlsbad and Chula Vista Industrial Projects Attracting Interest

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Carlsbad flex-industrial building recently completed

Developer Ben Badiee has completed a Carlsbad flex-industrial building while a Chula Vista warehouse was scooped up by a real estate investment firm in what has become an increasingly tight market.

Badiee said his 50,159 square-foot project in the Carlsbad Oaks North Business Park was 70 percent leased before it was even finished – including about 14,000 square feet of which has been leased to a French company that he said will make the building its U.S. headquarters.

Badiee declined to name the French company that’s moving into his building, but he said the company plans to spend $1 million in tenant improvements.

About 15,000 square feet of space in the building has been leased to Zense, which makes equipment for diabetics.

An additional 6,650 square feet has been leased to The Berg Group, a commercial drywall contractor with national headquarters in Minnesota. The company is moving its San Diego County offices from an existing Carlsbad location to the new building, Badiee said.

Taking Chances

The building has been named Innovate for what Badiee said were unusual design features for an industrial building and the tenants he’s attracting.

“The intention is you want innovative companies to come in. You want people that are taking chances with technology. You want people who are innovative in the life sciences or whatever project they do,” Badiee said. “Innovate means taking chances with things, coming up with products that can make people’s lives easier, make it better.”

TFW was the general contractor and Ware Malcomb designed the building’s interior.

Innovate has 14 glass grade-level roll-up doors, polished concrete floors, energy efficient lighting and is climate controlled.

“What we’ve done is create this space that’s all open and flowing that can be used for just about any purpose,” said Conor Boyle of Colliers International. “It’s kind of this space that meets all of the millennials’ desire for that creative work environment but it’s really a space that could be for any type of use.”

Boyle, Ted Cuthbert and Tyler Stemley, also of Colliers, are the leasing agents on the project.

Chula Vista

In South County, LPC West in a joint venture with Crow Holdings Capital has acquired a 112,000 square-foot industrial distribution building in Chula Vista for an undisclosed price.

About 62,000 square feet of the Chula Vista building is available for lease, according to LPC West.

The leasable space has 10 dock positions, a cross-dock arm with 10 additional dock positions, 24-foot minimum warehouse clearance and two drive-in doors.

The deal was brokered by Ron Bement of Newmark Knight Frank and Skye Cook of Cushman & Wakefield.

With San Diego offices downtown, LPC West is the West Coast arm of Lincoln Property Co. based in Dallas. Crow Holdings is a privately owned real estate investment and development firm based in Dallas.

LPC West in July acquired one of the last remaining industrial sites in Oceanside – 30 acres of land in Ocean Ranch, a more than 400-acre industrial development.

San Diego County’s industrial market has remained strong throughout the COVID-19 pandemic, with much of the new development coming in South County and to a lessening extent, in North County which had been a hot spot for new industrial activity.

“North County does not have any more land of any decent size for development,” Badiee said. “There really is not much land left in San Diego for large development generally.”

Like many other developers and investors, Badiee said he’s looking south to Otay Mesa for new projects. He said he has two ongoing projects in Otay Mesa but declined to give details.

By Ray Huard

Tuesday, August 4, 2020


Related Experts

Conor Boyle

Senior Vice President

Carlsbad

Conor Boyle is a Vice President with Colliers International, specializing in Industrial/R&D leasing and sales in North San Diego County.  Conor has nine years of experience in the commercial real estate industry and is currently responsible for the leasing and/or sale of over 1,000,000 square feet of property in North San Diego County.

Prior to working in commercial real estate, Conor was an officer in the United States Army and achieved the rank of Captain before leaving the Service.  Conor served two Tours of Duty in Iraq, including one as a tank Platoon Leader in Baghdad.

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Ted Cuthbert

Senior Executive Vice-President

Carlsbad

Ted is an industrial sales and leasing specialist and has been in commercial real estate for over 30 years. Ted was Colliers International San Diego Region’s #1 Top Producer of 2016, 2017 and 2019. In 2017, he earned the title of Senior Executive Vice President, one of only three in the San Diego region. He has been involved in the sale of major business park land sales totaling over 1,200 acres, as well as 70 build-to-suits, the sale of commercial buildings totaling over 3 million SF and the leasing of over 15 million SF. During his tenure, Ted has been involved in over 1,500 transactions with total transaction consideration in excess of $3 billion.

Ted joined CBRE- San Diego in 1988 and Colliers International- Carlsbad in 2005 and achieved the title of Senior Vice President at both Commercial Real Estate Brokerage Companies (based upon income, tenure and experience). Ted is a Top 10 performer in the San Diego County Region, year in and year out. His highly successful record of accomplishment and his strategic focus and market knowledge accelerates the success of his clients.

 

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Tyler Stemley

Associate Vice President

Carlsbad

Tyler Stemley is an Associate with Colliers International, specializing in Industrial/R&D leasing and sales in North San Diego County. 

Prior to working in commercial real estate, Tyler was a Certified Public Accountant in the San Francisco Bay Area where he specialized in Tax accounting as well as Audit & Attestation fieldwork.

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