NorthMarq’s record of accomplishment in San Diego county continues with sixteenth financing in Otay Mesa

Steve Hollister arranges $10 million refinance of TPO & East Otay yard storage via correspondent life company relationship

SAN DIEGO, CALIFORNIA (November 12, 2020) – Steve Hollister, senior vice president of NorthMarq’s San Diego office, arranged the $10 million refinance of TPO & East Otay. The two yard-storage properties consist of a total of 80 acres and are located in Otay Mesa, at the southern end of San Diego County. The transaction was structured with a fully-amortizing 15-year loan. NorthMarq arranged the fixed-rate loan through one of its correspondent life insurance company relationships. 

“The life insurance company that financed these two assets provided 15-year fully amortizing loans with very attractive rates,” said Hollister. “They have an excellent relationship with the borrower and have provided eight loans for them on assets located in Otay Mesa. This lender understands the nature of these types of properties with their strong historic and current occupancies. In total, NorthMarq has financed sixteen loans in Otay Mesa with seven different correspondent life insurance companies since 2010.” 

TPO consists of 64 acres of fenced, gated and gravel lots and is 100 percent occupied by four transport/logistics tenants. East Otay consists of 16 acres of fenced, gated and gravel lots that are primarily used for outdoor storage. It is 100 percent occupied by ten tenants with uses ranging from car and truck parking, scrap metal recycling, tire recycling, and other similar outdoor uses. 

Both assets possess quick access to the 905 and 125 Freeways, the Otay Mesa Port of Entry (where all commercial truck traffic between San Diego County and Mexico must pass) and the new POE, which is expected to be open by 2022. 

Demand for this property type in Otay Mesa is driven by the significant cross-border commerce and the close proximity to the US/Mexico POE, making it an attractive location for logistics operations that move goods across the border. Demand is also driven by the allowable use of outdoor storage, which is generally restricted in most areas of San Diego County.