What we can learn about Logistics and Industrial Real Estate in San Diego
Elion Partners, an east coast private investment firm based out of Miami, continues to grow their presence in San Diego county with the recent closing of an industrial property in Carlsbad. The purchase of 5803 Newton Ave in Carlsbad brings their total deals to five in the county, in the last year.
SAN DIEGO STAYS STRONG AS A CORE MARKET FOR INDUSTRIAL REAL ESTATE
Elion Partners’ investment in the San Diego market highlights recent expansion efforts by national companies, commonplace in the county since the onset of the COVID-19 pandemic. Current economic shifts have spurred enormous growth within the logistics real estate space (ie., warehouses, distribution facilities, fulfillment centers). The acceleration in e-commerce sales, stemming from consumers’ purchasing habits, have placed a strain on inventory levels and supply chains.
As a result, logistics real estate has emerged as an answer to the demand of consumers, and San Diego county continues to be a core market for this type of industrial real estate.
While many remain skeptical of what’s to come for the office market in San Diego, large industrial purchases such as the five recent acquisitions by Elion Partners in the county, continue to provide optimism for this sector.
A COMPANY TO WATCH
Elion Partners is an east coast private investment firm based out of Miami. Elion Partners have managed more than $2.0 billion in real estate assets since its founding in 2010. Their west coast expansion has been spearheaded by James Lambert who is responsible for overseeing strategic infill acquisition opportunities in high-growth core markets.
Elion Partners developed a close working relationship with Greg Pieratt, SIOR of Lee and Associates North San Diego County, over a year ago. Pieratt has since represented Elion Partners in all five of their recent acquisitions in San Diego county. Pieratt shares “oftentimes there is overlap between tenant representation and investment sales. The partnership that Elion and I share is a great example of that. Over the course of your real estate career you hope to have a handful of relationships that make a mark for your career. In a short time, the Elion family has done just that.”
Elion Partners’ recent acquisition of 5803 Newton Avenue in Carlsbad, CA features a 71,602 square foot industrial building. The building features four tenants and Dock and Grade loading. Desirable for being a well-maintained Class A industrial property, Elion Partners knew it was a perfect fit because it is located in the submarket of Carlsbad, which has a diverse and rapidly expanding tenant base.
Marko Dragovic and Isaac Little of Lee & Associates, and Ryan Plummer of Newmark represented the Seller, Rexford Industrial; and assisted in leasing for the company for many years. The Buyer, Elion ACQ, LLC, was represented by Greg Pieratt, SIOR.
Other recent notable purchases in which Pieratt has represented Elion Partners include:
The purchase of a 70,224 square foot building at 6212 Corte del Abeto in Carlsbad, the purchase of a 110,000 square foot building at 1111 Pioneer Street in El Cajon; Then the acquisition of an impressive 134,299 square foot industrial building at 2340 Cousteau Court in Vista. And finally, the purchase of a 82,781 square foot industrial building at 6955 Consolidated Way in San Diego.
With five transactions in the last year, Elion Partner’s acquisition total includes 475,000 square feet of space, totaling more than $80 million in investments throughout San Diego county.
While the market continues to be extremely tight in San Diego, Pieratt explains “we can expect Elion to continue to stay aggressive in their pursuit of off-market, value-add opportunities.”
Read the Case Study – Elion Partners to learn more about how Greg Pieratt, SIOR is helping to build Elion’s investment portfolio in San Diego.