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9/30/25
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The developer of Otay Business Park, a joint venture between Elevation Land Company and a real estate fund advised by Crow Holdings Capital, have obtained $102.4 mil in construction financing for the project’s first phase. Otay Business Park is a nine-building, 1.78 msf speculative Class A industrial development in the Otay Mesa submarket of San Diego.
The project’s Phase I will deliver 612.2k sf across four free-standing warehouse and distribution buildings ranging from 79.8k sf to 233.9k sf. The single-story, reinforced concrete tilt-up structures feature 32-foot clear heights and are divisible into suites as small as 45k sf to accommodate varying tenant requirements.
The development sits on 119 acres strategically positioned north and south of the recently completed Siempre Viva Rd extension, which connects directly to State Route 11. The property benefits from immediate highway access for northbound traffic entering the United States from the new Otay Mesa East Port of Entry, currently under construction and scheduled to open in late 2027.
Additionally, the project benefits from Otay Mesa's position as a critical logistics hub, with the submarket accounting for 17% of San Diego's 21.8 msf of industrial inventory. The area handles roughly two-thirds of all cross-border trade between California and Mexico, with more than one million northbound trucks crossing the existing Otay Mesa Port of Entry in 2023. The Otay Mesa submarket allows proximity to major transportation infrastructure, including Brown Field Municipal Airport 5.1 miles away, Interstate 805 7.6 miles away and the San Diego International Airport 24.9 miles from the site.
Construction for Phase I commenced in September 2025, with completion expected in mid-2026. The project is anticipated to reach stabilization by mid-2027.
Aldon Cole and Ben Choromanski with JLL Capital Markets arranged the three-year, floating-rate loan through New York Life Real Estate Investors.
"Otay Business Park represents an exceptional opportunity to capitalize on the unprecedented growth in U.S.-Mexico trade and the strategic advantages of near-shoring," said Cole. "The project's proximity to the new border crossing and direct highway access positions it to capture significant demand from companies seeking to optimize their supply chains and reduce cross-border transit times."
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