North Palisade Partners have secured US$71.25 million in financing for the acquisition and development of an industrial project in the San Diego region. ACORE Capital provided the loan for the new construction development of the Palisade Santee Commerce Center in Santee, California. The company acquired the 5.4-hectare inner-city plot at 10990 North Woodside Avenue for US$22.7 million from an unnamed vendor.
Dimitar Goulev, Managing Director for Originations at ACORE Capital, stated that this represents a rare opportunity to develop high-quality industrial space in a central San Diego County location, where very little new product has been developed in recent years. He also highlighted that the site is close to major transport corridors in the region, ensuring good connectivity to the rest of the county.
Project Overview and Market Analysis
The Palisade Santee Commerce Center, located approximately 20 miles northeast of downtown San Diego, will comprise two buildings with a total area of 290,618 square feet and 296 parking spaces. Completion of the project is planned for late 2027. Cushman & Wakefield negotiated the financing, with a team including Rob Rubano, Brian Share, and Joe Lieske involved.
Goulev pointed to robust demand drivers for the industrial sector in eastern San Diego County, which has a very low vacancy rate of just 1.5 per cent. He noted that there is particularly strong interest from industrial companies for spaces from 50,000 square feet, including sectors such as warehousing, distribution, and light manufacturing.
Joe Maeler, Chief Financial Officer at North Palisade Partners, emphasised that the development of the Palisade Santee Commerce Center had been four years in the making.
Key Players and Facts
- —Lender: ACORE Capital
- —Borrower: North Palisade Partners
- —Project Name: Palisade Santee Commerce Center
- —Location: 10990 Woodside Avenue, Santee, California
