ACORE Lends $71M on San Diego-Area Industrial Development 

North Palisade Partners has sealed $71.25 million in acquisition and construction financing to develop an industrial project in the San Diego region, Commercial Observer has learned.

Acore Capital supplied the loan for North Palisade Partners’ ground-up construction of the Palisade Santee Commerce Center in Santee, Calif. North Palisade Partners acquired the 13.4-acre infill site at 10990 North Woodside Avenue for $22.7 million from an undisclosed seller. 

 “It’s a rare opportunity to build high-quality industrial space in an infill location in San Diego County where very little new product has been developed in recent years,” Dimitar Goulev, managing director, originations at ACORE Capital, said in prepared remarks. “The site is close to some of the region’s major transportation corridors, providing good connectivity with the rest of the county.” 

Cushman & Wakefield negotiated the debt with a team led by Rob Rubano, Brian Share and Joe Lieske. 

Located 20 miles northeast of Downtown San Diego, Palisade Santee Commerce Center will consist of two buildings encompassing 290,618 square feet and 296 parking spaces. The project is slated for completion in late 2027.

Goulev noted that the development will benefit from strong demand drivers for the industrial sector in eastern San Diego County, which has an industrial vacancy rate of only 1.5 percent. He said there is particularly strong interest from industrial tenants in the 50,000-square-foot space from a variety of industries including warehousing, distribution and light manufacturing. 

“Palisade Santee Commerce Center has been more than four years in the making,” Joe Maeler, chief financial officer at North Palisade Partners, said in a statement. 

Andrew Coen can be reached at acoen@commercialobserver.com.