JLL Capital Markets has arranged an $81.6 million refinancing package for Otay River Business Park, a large-scale industrial and retail complex in Chula Vista, California. The financing supports a 369,803-square-foot business park spanning multiple buildings at 2925-2945 Main St. and 2775-2970 Faivre St., with the loan proceeds structured to address both existing assets and ongoing development activity.
Working on behalf of borrower Sudberry Properties, JLL secured a floating-rate, five-year loan through a debt fund. The financing includes future funding earmarked for construction completion and leasing costs, aligning the capital structure with the project's phased delivery schedule and ongoing lease-up requirements.
Otay River Business Park is located just east of Interstate 5 in Chula Vista, providing regional access for industrial, distribution, and retail users. The project has been developed in multiple phases between 2021 and 2026, reflecting a staged approach that combines stabilized, recently delivered, and under-construction components within the same business park.
The current phase under construction, Phase IV, consists of a planned 66,000-square-foot industrial building along with new parking facilities. Despite being under development, Phase IV is already 70% pre-leased to an investment-grade tenant, indicating strong pre-commitment from a creditworthy occupier even before full completion.
Across its existing space, the business park is reported to be 100% leased, with a tenant roster that includes a mix of industrial, distribution, and retail users. This fully leased profile across delivered phases, combined with substantial pre-leasing in the latest phase, positions the property as a fully activated business park with limited vacancy and diversified demand drivers.
The JLL Capital Markets team leading the assignment included Aldon Cole and Bharat Madan, along with Jenna Frakes. Their mandate encompassed arranging the floating-rate financing through a debt fund, with the capital structure designed to accommodate both the completed assets and the remaining development and lease-up needs within the multi-phase project.
The refinancing supports the continued build-out of Otay River Business Park while providing Sudberry Properties with a capital solution that matches the project's construction timeline and leasing profile. With full occupancy across existing phases and a substantial pre-lease in Phase IV, the transaction reflects lender and borrower alignment around the long-term positioning of the business park as a diversified industrial and retail hub in Chula Vista.
