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PCCP has originated a $39.2 million senior loan to refinance California Crossing, a two-building industrial park in San Diego’s Otay Mesa submarket. The cash-neutral refinancing was provided to a joint venture that includes Sudberry Properties and is secured by the 450,000-square-foot property at 717 and 755 Harvest Rd. Aldon Cole of JLL marketed the financing opportunity.
California Crossing comprises two Class A industrial buildings that are fully sprinklered and equipped with ESFR fire protection. Both facilities feature 32-foot clear heights, thermoplastic polyolefin roofing systems and LED lighting, aligning the complex with modern industrial and logistics requirements. The park was completed in 2023, positioning it among the newer industrial assets in the Otay Mesa area.
The project is currently 45% leased. Amazon occupies one of the buildings, taking 202,000 square feet, while the second building totals 248,000 square feet and is presently vacant. The lease-up of the remaining space represents potential upside for the venture as tenant demand evolves in this cross-border logistics corridor.
Situated at the intersection of SR-125 and SR-905, California Crossing offers regional connectivity and proximity to both the San Diego core and the U.S.-Mexico border. The property is approximately 15 miles from San Diego’s central business district and about 1.5 miles from the international border, making it well positioned for trade-oriented users and logistics operators.
The Otay Mesa submarket is described as benefiting from more affordable rental rates relative to the broader San Diego industrial market, while still drawing on a large labor pool and strong transportation links into the region’s dense population base. These structural attributes support the appeal of newer Class A product such as California Crossing for both lenders and tenants focused on modern distribution and fulfillment space.
The cash-neutral structure of the refinancing indicates that the new senior loan primarily recapitalizes the existing debt on the asset rather than funding additional cash proceeds. With a sizable, recently built facility anchored by a major tenant and significant vacancy available for future leasing, the transaction highlights ongoing capital deployment into contemporary industrial assets in Otay Mesa.
The post PCCP Refinances California Crossing Industrial Park in Otay Mesa with $39.2M Loan appeared first on CRE Market Beat.
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