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9395CABOT DRIVE
100% LEASED INDUSTRIAL | 6.2% YEAR ONE CAP RATE | CENTRAL SAN DIEGO | 52,728 SQUARE FEET
Cushman and Wakefield of San Diego, as exclusive advisor is pleased to present the opportunity to acquire 9395 Cabot Dr. (the “Property”), a best-in-class Property, a free-standing industrial building representing a unique investment opportunity in one of San Diego’s strongest industrial submarkets, Miramar. Comprised of one single-story building, the 52,728 square foot building features concrete tilt-up construction, efficient ingress/egress, well planned warehouse and office layouts, dock & grade loading capabilities and ample parking. Additionally, the Property is optimally located in Miramar near I-15 and I-805 freeways, providing access throughout San Diego County’s various residential communities, San Diego International Airport, the Port of San Diego and the extensive amenity base San Diego has to offer.
The Property is 100% leased to a well-established international tenant, Polypeptide Group, providing stable in-place income with attractive lease terms and a secure cashflow. The Property is well located near Miramar Road, and within the San Diego industrial market, which continues to experience high tenant demand and strong rent growth. With a high-quality tenant, prime location and historically strong market fundamentals, the Property represents an extremely rare opportunity to acquire a sizable building in the Miramar Submarket, one of the most desired investment markets in San Diego.
executive summary
PURCHASE PRICE $14,250,000
YEAR 1 CAP RATE 6.2%
YEAR 1 NOI $885,830
TERM Brand New 5 Year Term
Polypeptide Group, who originally purchased the Property in 2001, has grown to international prominence and has invested significant capital to establish a state-of-the-art facility. Polypeptide Group’s strong track record and market share, the quality of the real estate and the strong historical performance of Miramar will result in aggressive financing options leading to desirable leveraged returns. This asset represents a highly coveted opportunity that includes stable and secure cash flow with fixed annual rental increases.
Central San Diego is one of the most difficult markets in San Diego in which to acquire or develop new buildings. This market is essentially built-out and land costs are significantly higher than in the secondary markets. These significant barriers to entry due to a lack of available land pose a direct benefit to Central San Diego landlords, limiting investment opportunities that combine with strong tenant demand to drive rental rates upward in the industrial market.
Miramar is located in the Central County area of San Diego. Bordered on the west by the I-805 and on the east by the I-15 with Miramar Road crossing through the entire length, making for a highly accessible, amenity-rich submarket for any business. It includes residential areas, commercial, and light industrial districts. Most residents live on the Marine Corps Air Station Miramar, which was the site of the prestigious Top Gun program. Miramar is known as one of San Diego County’s most recognized real estate markets and boasts big name companies such as FedEx, Frazee Paint and Ballast Point, who choose to have their manufacturing and distribution facilities here due in part to its central location, excellent accessibility and widely diverse inventory of warehouse space.
Encompassing nearly 14.3 million SF of Industrial space, Miramar is one of the largest submarkets within Central County. Miramar has a strong and diverse local economy with numerous company headquarters and start-ups, prominent manufacturing and distribution corporations and exceptional access to I-15, I-805 freeways. Industrial vacancy rates in San Diego have significantly dropped during the previous two years and have been steadily declining since 2013. These fundamentals have encouraged continued tenant migration to the submarket, resulting in vibrant leasing activity, declining vacancy at 2.5% and increasing rental rates at $1.20 NNN as of Q2-2019.
high quality industrial asset
extremely high barriers to entry
preferred industrial submarket
strong market fundamental
investment highlights
TOTAL SQUARE FEET 52,728 Square Feet
BUILDING DESCRIPTION Single Story Industrial Building
NUMBER OF BUILDINGS 1 Building
OCCUPANCY 100%
LAND AREA 2.23 Acres (97,138 Square Feet)
APN 341-160-71
ZONING IL-2-1
YEAR BUILT 1975
STORIES One story
VEHICLE PARKING 2.5 per 1,000 SF
CONSTRUCTION Reinforced concrete tilt-up construction
CLEAR HEIGHT Approximately 21’
LOADING Dock High & Grade Level Doors
ELECTRICAL SERVICE Approximately 1,300a of 277-480v
HVAC Roof Mounted Package Units
FIRE PROTECTION Sprinklered
52,728 SF
2.23 AC
21’ Clear
100% Leased
Built In 1975
Dock & Grade
property overview
property location
POWAY
RANCHOBERNARDO
CARMELMOUNTAIN
SCRIPPSRANCH
MIRAMARUTC
LA JOLLA
TORREYPINES
KEARNYMESA
SORRENTOMESA
SORRENTOVALLEY
DELMAR
SOLANABEACH
9395CABOT DRIVE
property location
PolyPeptide Group was officially founded in 1996 through the acquisition of the Pep tech facility in Malmo, Sweden, followed by the establishment of US Subsidiary in 1997. Today the group has 6 different manufacturing sites across the globe, two in the US, three in Europe and one in India serving clients with peptide needs throughout the world. The PolyPeptide Group manufactures a third of all approved commercial peptide API’s in the world. Each PolyPeptide site has undergone at least one Pre-Approval Inspection (PAI) conducted by the US FDA, totaling more than 30 inspections globally.
The San Diego, California site is a 52,728 square foot facility that manufactures GMP grade peptides for clinical application as well as research grade peptides.
For GMP manufacturing, the Property is equipped for mainly solid-phase synthesis and is designed to handle lot sizes from a few grams to several kilograms. Design features include 3 solid phase synthesis suites, 2 intermediary processing suites, 2 purification & isolation suites.
Approximately 4,000 square feet (~400 sq. meters) of the facility is devoted to manufacturing of research peptides in milligram to gram quantities, including production of isotopically labeled and radio-labeled peptides, and development for pre-GMP projects.
The San Diego facility has been inspected by the US FDA 12 times, including a PAI inspection in 2009. This site has also been inspected by the Korean FDA, and approved by Japan’s Ministry of Health, Labor and Welfare for manufacturing and sale of a commercial API.
OF THE SALES OF OUTSOURCED PEPTIDE
THERAPEUTICS WORLDWIDE
% OF ALL APPROVED PEPTIDE DRUG SUBSTANCES
MANUFACTURED
EMPLOYEES LOCATED IN SIX MANUFACTURING SITES
ACROSS THE GLOBE
polypeptide group
9395 cabot drive facility
25%33% 800
tenant profile
floor plan
QC 2223 sq ftADMINISTRATION 7550 sq ftDEVELOPMENT 3500 sq ftGMP 8908 sq ft
RAW MATERIALS STORAGE 3727 sq ftFACILITIES 5300 sq ft
QA 2300 sq ft
LEGEND
GMP STORAGE 725 sq ft
RAM (RADIOACTIVE MATERIALS) 280 sq ft
DEVELOPMENT
GMP
FACILITIES
FACILITIES
ADMIN
GMP STORAGE
QC
QC
QC
QC
RAWMATERIALSSTORAGE
RAM
QA
ADMIN
ADM
IN
WAREHOUSE
WAREHOUSE 11,717 sq ft
FACILITIES
HALLS 3075 sq ft
ADMIN
ADM
IN
ADM
INDEVELOPMENT
QC 2223 sq ftADMINISTRATION 7550 sq ftDEVELOPMENT 3500 sq ftGMP 8908 sq ft
RAW MATERIALS STORAGE 3727 sq ftFACILITIES 5300 sq ft
QA 2300 sq ft
LEGEND
GMP STORAGE 725 sq ft
RAM (RADIOACTIVE MATERIALS) 280 sq ft
DEVELOPMENT
GMP
FACILITIES
FACILITIES
ADMIN
GMP STORAGE
QC
QC
QC
QC
RAWMATERIALSSTORAGE
RAM
QA
ADMIN
ADM
IN
WAREHOUSE
WAREHOUSE 11,717 sq ft
FACILITIES
HALLS 3075 sq ft
ADMIN
ADM
IN
ADM
IN
DEVELOPMENT
ZACHARY [email protected] Lic 02031352
BRANT ABERG, [email protected] Lic 01773573
BEN [email protected] Lic 01986718
BRYCE ABERG, SIOR
[email protected] Lic 01313484
RYAN [email protected] Lic 01389321
ROB [email protected] Lic 01764417
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l e a s i n g e x p e r t d e b t e x p e r t
