New York Life Lends $102M for San Diego Industrial Development
It is the second major loan deal for a Southern California industrial property originated by the financial services titan in the past few weeks
By Nick Trombola September 29, 2025 4:25 pm
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New York Life has provided a nine-figure construction loan for an industrial buildout in San Diego, at least its second major industrial financing deal in the region this month.
A joint venture between Elevation Land Company and a fund advised by Crow Holdings Capital secured $102.4 million from the financial services giant for the first phase of Otay Business Park, a 119-acre warehouse and distribution development in San Diego’s Otay Mesa neighborhood. The debt is a three-year, floating-rate construction loan.
Once completed in mid-2026, Phase One of the development will feature four free-standing warehouses and distribution facilities that together total 612,240 square feet. The full project, just north of the U.S.-Mexico border, will encompass nine buildings spanning a total of 1.78 million square feet once fully completed in late 2027.
JLL’s Aldon Cole and Ben Choromanski arranged the financing.
“Otay Business Park represents an exceptional opportunity to capitalize on the unprecedented growth in U.S.-Mexico trade and the strategic advantages of near-shoring,” Cole said in a statement. “The project’s proximity to the new border crossing and direct highway access positions it to capture significant demand from companies seeking to optimize their supply chains and reduce cross-border transit times.”
A spokesperson for New York Life declined to comment.
San Diego’s larger industrial market saw negative absorption in the second quarter this year due to some sizable life sciences and logistics move-outs, according to JLL’s most recent regional report. But some large block logistics and food & beverage move-ins in Otay Mesa help level out. Also, about 1 million square feet of industrial space is under construction in Greater San Diego, almost all of which is from an e-commerce user’s build-to-suit project in Otay Mesa.
The Otay Business Park deal is the second nine-figure debt package provided by New York Life within just the past few weeks. Earlier this month, New York Life provided a $130 million refi toward Sukut Real Properties’ 1.1 million-square-foot industrial portfolio. The 21-property portfolio spans Los Angeles, Orange and San Diego counties, as well as the Inland Empire region.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
