LBA Logistics Buys $46M San Diego Asset

5959 Santa Fe St.

LBA Logistics has paid $46.3 million for 5959 Santa Fe St., a 131,299-square-foot infill and coastal distribution center in San Diego. A CBRE team represented the seller, identified by CommercialEdge as Anheuser-Busch Cos., in the sale-leaseback transaction.

Completed in 1980 on 7.1 acres, 5959 Santa Fe has been Anheuser-Busch’s primary distribution center. The building features 190-foot truck courts, mechanical loading doors, built-in dock levelers and duck bumpers, according to CommercialEdge information. Situated just east of Interstate 5, the facility is 10 miles north of San Diego, having access to the entirety of Los Angeles and the Inland Empire.

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CBRE Executive Vice President Matthew Carlson, Vice President Hunter Rowe, First Vice President Sean Williams and Senior Vice President Matthew Carlson, together with Vice Chairman Barbara Perrier and Executive Vice President Joe Cesta, negotiated on behalf of the seller.

LBA has been an active investor nationwide, having closed 22 acquisitions in the last 12 months, CommercialEdge data shows. On the development side, the firm recently completed Industry Center at Melrose Park, a three-building industrial park in Chicago, and inked a full-building prelease at its under-construction research facility in Irvine, Calif.

San Diego’s industrial reign

San Diego’s industrial market has continued to post strong vitals even in the face of looming economic headwinds. A third quarter 2022 report from JLL indicates that the metro’s net absorption trended upwards at 1.5 million square feet year-to-date as of September while the average vacancy rate continued to be among the lowest in the region’s history, at 2.2 percent.

Understanding the deal in this context, Rowe explained to Commercial Property Executive, “The significant interest level and investor enthusiasm for the asset indicate how the market values well-located coastal assets in San Diego. The rare infill nature of the facility and the opportunity for a prime last-mile location to serve some of San Diego’s more affluent communities make 5959 Santa Fe an ideal asset for many institutional investors.”

Data also shows that San Diego had more than 2 million square feet of industrial space under construction, with some 580,000 square feet to be delivered by the end of the year. Most of the current developments are located in Otay Mesa, a submarket that will soon see the start of a $1 billion industrial project.