JLL arranges $81.6M financing for Chula Vista business park

JLL Capital Markets has arranged $81.6 million in financing for the Otay River Business Park, a 369,803-square-foot industrial and retail development in Chula Vista.

JLL arranged the floating-rate, five-year loan on behalf of San Diego-based developer Sudberry Properties. The loan, provided by a debt fund, includes future funding for construction completion and leasing costs.

The business park is located at 2925-2945 Main St. and 2775-2970 Faivre St., just east of Interstate 5. The location provides access to Interstate 5, Interstate 805, Interstate 8 and State Routes 54 and 905, connecting the property with San Diego, Mexico, Los Angeles and other Western markets.

The development includes stabilized, recently completed and under-construction buildings developed in multiple phases between 2021 and 2026. The fourth phase, currently under construction, includes a 66,000-square-foot industrial building and parking facilities.

Existing space at the development is fully leased, while the fourth phase is 70% pre-leased to an investment-grade tenant. The tenant base includes industrial, distribution and retail users.

JLL senior managing director Aldon Cole and vice president Bharat Madan led the financing team, with analyst Jenna Frakes. JLL Derivatives advised on the purchase of an interest-rate cap.

Cole said the financing will provide Sudberry with capital to complete the fourth phase while allowing the company to capitalize on potential rent increases across the property's stabilized portions.

Sudberry Properties has more than 40 years of experience developing and managing commercial real estate in Southern California. The company has completed more than 55 developments and has a portfolio exceeding 12.5 million square feet, including business parks, shopping centers and mixed-use communities.