Hines Sells San Diego-Area Industrial Property for $73M

Real estate giant Hines has traded one of its San Diego-area logistics assets in one of the region’s priciest industrial sales of the year. 

Hines sold Raceway Industrial, a 228,548-square-foot logistics facility in Carlsbad, for $72.9 million to an affiliate of New Pacific Realty, property records show. Constructed by Hines in 2024 at 3125 Lionshead Avenue, Raceway Industrial features a 4,369-square-foot office on the first floor, and a 4,000-square-foot mezzanine office. Shipping and delivery company UPS fully leases the property on a long-term basis.

Cushman & Wakefield’s Aric Starck and Drew Dodds represented Hines in the deal, while C&W’s Brant Aberg and Bryce Aberg represented New Pacific Realty. 

“The sale of 3125 Lionshead marked the second-largest industrial transaction in San Diego County in 2025, as one of the largest free-standing industrial sites in the county,” Starck said in a statement. “[UPS’s] tenancy provides consistent income growth and stability, supported by UPS’s strong credit profile and long-standing track record as a global logistics leader.”

The largest industrial deal in the greater San Diego area this year appears to be CenterPoint Properties’ June purchase of 4450 Ruffin Road, a last-mile distribution facility for which it paid $80 million. 

While not as large or well-known as its peers elsewhere in Southern California, San Diego’s industrial market has hosted notable investment activity this year. That includes Elevation Land Company and a fund tied to Crow Holdings Capital landing a $102 million loan for  the first phase of Otay Business Park, a 119-acre warehouse development in the city’s Otay Mesa neighborhood. Back in May, Parallel Capital Partners paid $67 million for a 15-building, 234,000-square-foot complex just east of the La Jolla neighborhood. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.