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Impact Awards

California Crossings Attracts Amazon Expansion in City's Industrial Hub

Commercial Development of the Year for San Diego
Sudberry Properties developed the two-building California Crossings industrial campus in San Diego's Otay Mesa neighborhood. (CoStar)
Sudberry Properties developed the two-building California Crossings industrial campus in San Diego's Otay Mesa neighborhood. (CoStar)
By Lou Hirsh, Dominic Capocelli
CoStar News
March 27, 2024 | 10:30 AM

Developer Sudberry Properties' two-building California Crossings was completed in March 2023 in San Diego's Otay Mesa neighborhood and immediately brought in Amazon as the e-commerce giant prepared to open a distribution facility spanning more than 200,000 square feet.

Amazon already had extensive operations in the Otay area, and its expansion came as multiple companies involved with commerce and logistics started bolstering their operations in the neighborhood located near the U.S.-Mexico border. Spanning nearly 450,000 square feet, California Crossings is among the largest properties developed in recent years to meet the burgeoning demand for industrial space tied to fast deliveries and, more recently, to corporate efforts to onshore or re-shore operations from overseas to domestic locations.

Negotiations are underway with other potential tenants at California Crossings. For its quick preleasing by Amazon and prime location in the cross-border region, a panel of local judges chose the project for a CoStar Impact Award as commercial development of the year for San Diego.

About the Project: San Diego-based Sudberry Properties built the two-building industrial campus at 717 and 755 Harvest Road in the city's Otay Mesa neighborhood. It spans 29 acres and is located near several interstate and California freeways.

What the Judges Said: Christopher Sohaey, managing principal at investment firm MMC Real Estate Holdings, said local industrial developments such as California Crossings provide crucial support for bi-national trade and logistics. "Here we have a behemoth of a project that will have much benefits for the community with tax revenue but also will boost our local economy with important trade components," Sohaey said. Amy McNamara, principal at brokerage Urban Property Group, said, "The impact this project will have to the surrounding area is greatly needed," adding the project will eventually support new jobs, development of affordable housing and upgrades to city infrastructure.

UPDATED They Made It Happen: The project was led by Thomas Sudberry and Colton Sudberry of development firm Sudberry Properties. Robert Hixson III and Bill Dolan of brokerage CBRE handled leasing on behalf of the landlord.

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