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8/28/24
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A joint venture between RPG and Steel Peak acquired a 38.7k sf, flex-office property on 4.27 acres of industrial land zoned for outdoor storage for $12.1 mil. The property is located at 9606 Aero Dr, just west of I-15.
The seller will stay in their headquarters as part of a leaseback agreement through 2025. In addition to the existing office space, which is highly amenitized and LEED certified, the site includes a vacated data center that will be converted into warehouse space with multiple grade-level loading doors, creating a Class A IOS facility that will be ideal for industrial services businesses, building material suppliers, electric vehicle companies, or construction related businesses, according to Adam Robinson, Founder and President of RPG.
A location in San Diego due to the easy access to multiple major freeways.” says Blake Rodgers, Co-Founder and Principal of Steel Peak. “There are multiple companies that will be interested in such a functional IOS facility with a large yard for outdoor storage once it becomes available, and through the leaseback we’ll have steady cashflow in the meantime.”
Conversions into industrial have become a popular solution for depreciating office spaces, which have been falling in demand since the pandemic. A Newmark report found last year that 15.2 msf of offices nationwide had been converted to industrial use, a 33.7% increase in just two years.
Robinson shared that some of the value-add improvements will include construction of a warehouse as well as fencing, lighting, and paving. However, he added that it’s the site’s location on Aero Drive, which serves as a major thoroughfare connecting Interstate 15 to the Interstate 805 and State Route 163 interchange, and its heavy power that produces 2,000 AMPs / 480 Volts that make the property a unique asset.
Collier’s Kurtis Blanchard and Evan McDonald represented the buyers in the transaction.
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