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Kearny begins work on development within Otay Crossings Commerce Park


Kearny Real Estate begins construction on a two-building industrial complex

Kearny Real Estate began construction Monday on a two-building industrial complex within the Otay Crossings Commerce Park in Otay Mesa.

The build-to-suit buildings are being constructed for Boston-based Cabot Properties, according to Collier International, which will be handling the leasing. The complex is being developed between where Amazon is building a 3.3 million-square-foot fulfillment center and the planned Otay Mesa II Port of Entry.

The buildings are slated for completion in the fall of 2021.

Building A will be 72,028 square feet in size and feature 32-foot clear heights, 26 dock-high loading doors, two ground-level loading doors with ramps, and 91 parking stalls. Building B will be 79,395 square feet total and feature 32-foot clear heights, 86 dock-high loading doors, 2 ground-level loading doors with ramps, and 97 parking stalls.

Jeffrey Givens, a Kearny Real Estate partner who works out of the San Diego office, said his firm, in conjunction with Pacific Coast Capital Partners (PCCP) are providing financing for the project.

The Colliers team of Mark Lewkowitz, Chris Holder and Will Holder will handle the leasing for the properties, which are currently available for future use.

"Despite uncertain market conditions due to COVID-19, San Diego's industrial market remains strong with continued demand from cross-border related tenants," Lewkowitz said. "These two new buildings -- featuring superior clear heights, contemporary design and modern amenities -- are ideally designed for a variety of tenants ranging from manufacturing to distribution and logistics, among others. We believe the project is very well situated, immediately adjacent to the new SR-11 border crossing and the new Amazon Fulfillment Center."

While ideally it would be preferable to have a single tenant take both buildings, Givens said they could be divisible to allow as many as six tenants. He said three or four tenants is more likely.

"We are proud to bring two high-quality industrial buildings within the Otay Crossings Commerce Park," said Justin Harvey, Cabot Properties' managing director of investments for the West region, in a statement "With its proximity to the U.S.-Mexico border and connections to San Diego, Los Angeles and beyond, Otay Mesa continues be an ideal location for new development."

Givens said the Amazon Fulfillment Center will be a game changer.

"It certainly puts Otay Mesa on the map," he said.

Givens, whose business park is less than a quarter of the mile from the huge building, said from what he has seen of the construction, he would expect that facility to be up and running before next year's holiday season.

As for Otay Crossings, the original 300 acres has dwindled significantly. Some of that land was sold to Caltrans for the planned Otay Mesa II Port of Entry, and the State Route 11 Toll Road that will lead up to the crossing.

"We also sold land to the county for its Emergency Vehicle Operations Center," Givens said. "This was a couple of buildings and what amounts to a race course."

Kearny Real Estate has an approved tentative map for 59 industrial lots. The Los Angeles developer also has acquired an additional 229 acres for offsite mitigation. The initial lots have been completed, and more are slated to come on board in the first quarter of next year.

Givens explained that it is difficult to tell what the overall square footage will be for the project because a lot of it will be used for the outdoor storage of equipment and trailers.

Givens said that 16 acres has been sold for a build-to-suit for McKinney Trailer Rentals.

Givens said if demand continues at its present pace, Otay Crossings could be built out by the end of 2022.

By Thor Kamban Biberman

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Mark Lewkowitz

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Mark Lewkowitz is a 15+ year veteran in the commercial real estate business in San Diego and has been a part of the significant growth and development in the Industrial San Diego market over that period of time. Mark specializes in the Leasing, Sales and development of warehouse, manufacturing, and distribution facilities. His years of experience in dealing with strategic planning, financial analysis, and 1031 exchanges have resulted in a very loyal client list.

Mark is consistently ranked as a top producer both within the San Diego Region and the West Coast. Mark has also been awarded within the Colliers’ Everest Club, which recognizes the top 10% of all Colliers professionals in brokerage, valuation and corporate solutions across the U.S. business based on revenue production. Mark is most known for his ethics, hard work, dedication and always exceeding his client’s expectations. He keeps abreast and current of the ever-changing industrial and office markets. He has been responsible for negotiating a wide range of transactions, including leases, subleases, purchases and sales.

Mark is an active member of SIOR and NAIOP. His civic affiliations include the National City Boys and Girls Club and Big Brothers Big Sisters of San Diego County.

Mark earned a bachelor’s degree in Economics from University of California, San Diego. While he attended UCSD he was a member of the Men’s Basketball Team. Mark still enjoys playing in competitive basketball leagues, with his athletic prowess on a serious decline.

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Will Holder

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After graduating from San Diego State University with a degree in Cultural Anthropology, I worked in the photography field for a few years (still an avid photographer)  before deciding to join the Commercial Real Estate industry.  I specialize in the industrial market (5,000 sqft. and greater) in the South Bay (National City, Chula Vista, Otay Mesa) submarkets. Backed by a team who has extensive experience in all areas south of the I-8 (Mark Lewkowitz and Chris Holder,) I'm prepared to assist with any commercial real estate needs in the Central San Diego down to Otay Mesa/San Ysidro submarkets. 

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1997-2008 - Vice President, John Burnham Real Estate
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