BKM Capital Partners has recently completed a recapitalization of three business parks located in San Diego’s Otay Mesa submarket. The transaction, valued at $76.9 million, marks the first joint venture between BKM and Tokyu Land US Corporation.
The properties involved in this recapitalization include Borderpoint Business Park (6754, 6774, and 6794 Calle de Linea), Otay Crossing Business Park (2340 Enrico Fermi Dr. & 10025 Siempre Viva Rd.), and Otay Distribution Center (6987 and 6995 Calle de Linea). Together they total over 342,000 square feet of small-bay industrial space.
These properties are currently leased to a diverse group of tenants with an average remaining lease term of approximately two years. Rents for these spaces are currently below market rates by about 17%.
According to Brett Turner, senior managing director at BKM responsible for acquisitions & dispositions: “Our efforts to reposition these assets have resulted in highly functional and desirable industrial spaces within the competitive Otay Mesa market.”
