Pacific Highway Storage

San Diego, CA
A Lease-Up Managed Property
A Case Study

  • Property Address: 4350 Pacific Highway, San Diego, CA 92109
  • Square Footage: 89,000 sf on 1.9 acre site
  • Number of Units: 1131 storage units

The Principals of Frontera Real Estate took over management of Pacific Highway Storage in April 2010. The property was constructed in 2009 and at the time of takeover was roughly 18% occupied. The property suffered from a negative reputation in the market, a problem with homeless tenants and well below market rents. There were also a number of un-rentable units due to construction defaults and no inventory control system in place.

Upon takeover, an analysis of major issues was performed to quickly identify areas that needed improvement, and move to get the property back on track. We performed a full lease audit and initiated the use of an improved contract. The capital concerns were addressed to bring units back to a rentable condition, and much of the tenant mix was turned over to bring the property into compliance with local ordinances.

In the first year, in a down economy, our team was able to increase the occupancy by 34 percentage points while also increasing average rents by $.07 per square foot. This continued through the second year under management as the occupancy increased by an additional 30 percentage points.

The asset has been stabilized and we have continued to push the rents and occupancy. We added additional services, including on site shredding, eWaste recycling, and shipping services to accommodate the needs of the specific area and our tenants. Our team has also overseen capital improvements including a complete LED retrofit, improved landscaping, and installation of insulation to make the property more energy efficient.

This property is now a market leader in both occupancy and rental rates.

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