Newmark Grubb Knight Frank (NGKF) has completed the sale of a two-building industrial property totaling approximately 540,000 square feet in the Otay Mesa submarket of south San Diego County. Additionally, NGKF has negotiated a lease with the seller, Panasonic Corporation, on a lease-back for a total of 229,369 square feet as part of the transaction. Located at 2001 and 2055 Sanyo Avenue, the properties were built in 1986 and 1992 respectively and are situated on just under 37 acres of land. Also as part of the sale, there was a fully entitled land parcel, which the buyer plans to develop.
Senior Managing Director Brent Bohlken and Director Bryan Teel out of the La Jolla office of NGKF, represented the seller, Panasonic. The buyer, Murphy Development Company (MDC), represented itself in the transaction. Bohlken and Teel also negotiated Panasonic’s new five-year lease within the 2001 Sanyo Avenue building.
“Murphy, a very active developer and owner in the Otay Mesa submarket, saw the opportunity to add value and meet the demands of users in this very tight industrial market. Panasonic as well as new users will also be able to take advantage of the new infrastructure and roadways that have been improved over the last few years,” said Bohlken.
Bolkhen added: “Panasonic, which is currently within portions of both buildings, will be able to soon enjoy better efficiencies within one building, as well as upgrades and new amenities within the asset.”
MDC had originally built the campus for Sanyo, which was acquired by Panasonic in 2010. MDC plans to rename, renovate and reposition the campus over the coming months in order to attract tenants and lease up the remaining vacancy. Some of the upgrades include new landscaping, updating the solar panel system, modernizing office areas, and adding dock and grade doors. MDC will also add a café, a physical fitness facility, and outdoor amenities including break areas.
The transaction also included new lease negotiations with several on-site cell towers with a total of five different providers including AT&T and T-Mobile.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.