The sale was brokered by executive vice president Louay Alsadek, first vice president Richard Kwasny, senior associate Allen Evans and sales assistant Evan August of the San Diego office of CB Richard Ellis. The CBRE team represented both the buyer and the seller.

The Ocean View Corporate Center was developed in 2005, and David H. Hoster II, president and CEO of EastGroup, points out that the REIT bought the complex at 20% to 25% below replacement cost. The deal increases EastGroup's ownership in the South San Diego market to 465,000 square feet.

The three Ocean View buildings are at 1425 Corporate Center Dr., 1440 Innovative Dr. and 6020 Progressive Ave. The name of the seller was not disclosed, but industry sources tell GlobeSt.com that the seller was Prudential.

The San Diego industrial market, like virtually every other in the US, finished 2009 with higher vacancy and negative net absorption for the year, according to the latest market report from CBRE. The direct vacancy rate climbed from 7.8% at the beginning of the year to9.9% at the end of the year, while the overall availability rate increased from 12.1% to 16.0% over the same period.

"As expected, net absorption and market growth have been negative as more tenants reduced their occupancy needs or vacated existing space," CBRE said in its report. According to a recent report by CBRE Econometric Advisors, "the short-term forecast calls for an overall decline in manufacturing and distribution workers and total net absorption is forecasted to lag supply." The recovery period will likely begin in early 2011, with industrial employment and net absorption levels returning to a positive trend.