The Campus Effect: Why Proximity Drives Durability

We have a new acquisition opportunity we’re excited to share: 9285 Dowdy Drive in San Diego’s Miramar submarket.

It’s a 3.91-acre industrial outdoor storage site, fully leased to San Diego Gas & Electric (Sempra Energy) on a long-term NNN basis.

The short version is straightforward: investment-grade tenant, long-term lease, contractual rent growth, and no lease-up risk in one of the tightest industrial markets in the country.

This is the kind of deal where the appeal is in what isn’t required. There’s no repositioning plan, no operational lift, and no dependency on market timing to make the numbers work. The income is already in place, and it grows by contract.

The tenant is a core part of the story. SDG&E, backed by Sempra (S&P BBB+, Fortune 250), uses the site for utility infrastructure operations — a mission-critical use case. They signed a 128-month lease in December 2023 and operate just five minutes from a large service center they’ve owned for decades.

What’s notable here is how the location actually functions for them. The property sits just 1.8 miles from their primary operations hub at 6875 Consolidated Way — effectively creating a “campus” dynamic between the two sites. Equipment, crews, and operations can move seamlessly between locations with minimal downtime.

That proximity matters. It’s not just a convenient site — it’s operationally integrated into their network. When real estate becomes part of how a tenant actually functions day-to-day, it materially reduces the likelihood they leave.

At acquisition, the property offers 8.4 years of remaining lease term and is 100% occupied from day one. We are stepping into a stabilized income stream with no downtime risk.

That income also has built-in growth. In-place rent is approximately $121,000 per month, increasing 3.25% annually. By year five, NOI grows to roughly $1.68 million — entirely through contractual escalations, not market-driven assumptions.

We have the deal under contract at $25.8 million, reflecting a 5.63% going-in cap rate on day-one income. From there, returns are driven by that contractual growth — translating to a projected 13.9% net IRR to LPs over a five-year hold, without relying on operational upside or market timing.

The deal itself was sourced off-market through relationships rather than a competitive bidding process. In a market like San Diego, where industrial assets are tightly held and widely marketed deals attract heavy competition, that matters.

There is also longer-term optionality in the land. The site spans 3.91 acres with a sub-4% FAR in the Miramar industrial corridor, signaling meaningful underutilization. While not part of our underwriting, future redevelopment potential provides an additional layer of upside.

We are currently finalizing the purchase agreement with an anticipated closing in June.

This is not a value-add investment. It’s a stabilized, investment-grade income stream with contractual growth, backed by a tenant whose operations are physically tied to the asset.

If this is the kind of profile you’re looking for, happy to connect and walk through the opportunity in more detail. As this is a larger investment, please note minimum investment amount will be $250,000.