JLL Arranges $81.6M Financing for Sudberry Properties' Otay River Business Park in Chula Vista
CHULA VISTA, Calif. — Sept. 3, 2026 — Jones Lang LaSalle Americas, Inc. has arranged $81.6 million in financing for Otay River Business Park, a 369,803-square-foot industrial and retail business park located at 2925–2945 Main St. and 2775–2970 Faivre St. in Chula Vista, California. The loan was secured on behalf of borrower Sudberry Properties through a debt fund.
Deal Structure and Loan Terms
The financing is structured as a floating-rate, five-year loan and includes future funding provisions to cover construction completion and leasing costs associated with the park's ongoing Phase IV development. Jones Lang LaSalle Americas, Inc.'s Derivatives team advised on the purchase of an interest rate cap in connection with the transaction.
The loan is designed to enable Sudberry Properties to complete Phase IV — a 66,000-square-foot industrial building and associated parking facilities currently under construction — while also capturing mark-to-market rent opportunity across the park's stabilized phases. Phase IV is already 70% pre-leased to an investment-grade tenant. The existing space across the park is 100% leased.
The JLL Capital Markets team was led by Senior Managing Director Aldon Cole and Vice President Bharat Madan, along with Analyst Jenna Frakes.
"This financing highlights the strength of Sudberry Properties' development expertise and their ability to deliver institutional-quality product in a market benefiting from nearshoring trends and strong tenant demand," said Aldon Cole. "The flexible loan structure provided the sponsor with the capital needed to complete Phase IV while capturing the property's mark-to-market rent opportunity across its stabilized phases."
Property Overview: Otay River Business Park
Otay River Business Park spans approximately 50 acres in southwest Chula Vista, situated at the southwest corner of Main Street and Fourth Avenue, extending south to the Otay River and west to Broadway. The site was formerly known as the Nelson Sloan Property and is governed by the Otay River Business Park Specific Plan, which consolidated and subdivided the roughly 53-acre site into 14 lots to accommodate industrial, commercial, and open space uses.
The development has been built out across multiple phases between 2021 and 2026. Phase I delivered 137,500 square feet, fully leased to retailers, manufacturers, and warehouse users. Phase II added two manufacturing and warehouse buildings totaling 205,335 square feet. Phase IV, the current construction phase, includes a 66,000-square-foot industrial building and parking facilities. Sudberry's broader project description references approximately 412,000 square feet of commercial and industrial space in total, with an additional 14,000 square feet of retail planned.
The tenant base spans industrial, distribution, and retail users. Retail tenants at the park include Super Star Car Wash, Jamba Juice, Birrieria y Menuderia Guadalajara, Boochcraft, and 7-Eleven.
Location and Logistics Advantages
The park is positioned just east of Interstate 5 in Chula Vista, providing access to San Diego, Mexico, Los Angeles, and the broader western United States via Interstates 5, 805, and 8, as well as California State Routes 54 and 905. The proximity to the U.S.–Mexico border has positioned the site to benefit from nearshoring activity in the region.
The site is bordered to the south by Otay Valley Regional Park and the Otay River, placing it at the edge of a regional open space corridor while maintaining direct freeway connectivity to major logistics corridors throughout Southern California.
About the Principals
Sudberry Properties is a San Diego-based real estate development and asset management firm founded in 1979. The company has developed approximately 12.6 million square feet of commercial and residential property with a market value exceeding $2.5 billion, including more than 5 million square feet of retail lifestyle centers and approximately 4 million square feet of office and industrial space. Sudberry Properties has also completed or is in the process of building more than 2,500 apartment units.
Jones Lang LaSalle Americas, Inc. is a real estate broker licensed with the California Department of Real Estate, license #01223413. JLL's Capital Markets group operates globally with more than 3,000 specialists in offices across nearly 50 countries, providing debt advisory, investment sales, equity and fund placement, and related services to real estate investors and occupiers.