A partnership of TriGate Capital LLC and Lotus Real Estate Partners LLC have acquired a 102,520-square-foot industrial building in the Otay Mesa submarket of San Diego for a reported $5.03 million or $49.06 sq.ft.
The property, located at 9485 Customhouse Plaza on Otay Mesa, was initially purchased from a unit of Clarion Partners for $4.63 million by Horoy Inc., of Rancho Santa Fe, with Daniel Homan as its agent in late September.
Horoy then sold the property to the Trigate/Lotus partnership for the $5.03 million the following day.
Brian Walker, managing partner for Irvine-based Lotus Real Estate Partners, said the joint venture has entered into a seven-year lease valued at $2.5 million with Horoy allowing the furniture moving and storage company to lease back 57,681 square feet or 55 percent of the building.
“The Otay Mesa building represents a continuation of our investment strategy to acquire well-located industrial and office properties in Southern California where we have the ability to add value through repositioning, development or proactive management,” Walker said.
The building is 100-percent occupied, with other major tenants being On-Time Logistics, 30,808 square feet; and Phase II Products, 14,415 square feet; occupying the remaining space. The one-story property features 42 loading docks, eight drive-in doors and a 24-foot clear height.
The Customhouse Plaza building is located in the nine-building industrial park in of the same name.
The Lotus/TriGate purchase is the second acquisition by the joint venture which closed its first transaction last spring in Long Beach.
The joint venture plans to invest approximately $60 million in office and industrial value-add opportunities throughout Southern California over the next few years, with Lotus serving as the operating partner for the joint venture.
Jay Henry and Jason Obenhaus were the Dallas-based TriGate executives leading the transaction.
“This acquisition will allow the joint venture to establish a foothold in a rapidly improving submarket at a very compelling cost basis,” Obenhaus said.
Jeffrey Chiate with the Irvine office of Cushman and Wakefield represented Lotus/TriGate in the acquisition — with Stephen Dunn from the Romar Co. in Rancho Santa Fe, representing the seller.