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SAN DIEGO, CA-Harsch Investment Properties has picked up its fourth San Diego industrial property since reentering the market last year, having recently shelled out nearly $22.6 million for Cabrillo Commerce Center.

Portland, OR-based Harsch has purchased the 214,533-sf industrial/warehouse and freeway showroom property from Gateway Buena Park Inc., a California corporation dba Rreef America LLC. The multi-tenant complex stands on a 12.36-acre site at 5600-5644 Kearny Mesa Rd. and 5555-5595 Magnatron Blvd., located two miles east of the 805 Freeway near the intersection of Clairemont Mesa Boulevard and the 163 Freeway. It consists of nine one-story facilities that were 95% occupied at the time of sale. Approximately 53 companies occupy the complex, which boasts a tenant roster that includes San Diego Harley Davidson, Interior Surrounding, Olhausen Game Rooms and Boyd’s Coffee.

Nick Psyllos and Larry Jackel of CB Richard Ellis’ San Diego office represented both Harsch and Gateway Buena Park. Jackel, along with CB Richard Ellis colleagues Bill Dolan and Doug Works, will handle ongoing leasing efforts at the property.

Harsch zeroed in on this property because “it is truly irreplaceable,” regional vice president Bill Rodewald tells GlobeSt.com, explaining that a developer lucky enough to find some available land in Central San Diego, would have to pay “in the high teens to the low twenties” to acquire it. In order to justify the land price, the developer would then have to build office, R&D or retail product.

“San Diego is severely land restricted,” Rodewald adds. “There just isn’t room, outside of Otay Mesa and potentially Oceanside. Supply is relatively fixed and demand is going to continue to rise over the coming years.”

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