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R. Michael Murphy

Murphy Development president brings office, industrial space to Otay Mesa

Murphy Development is the largest commercial real estate developer in Otay Mesa. The firm has completed in excess of 3.7 million square feet of space there and has plans for an additional 3.5 million square feet of corporate industrial, technology and office space on the mesa.

Murphy develops a combination of speculative state-of the-art industrial buildings and corporate build-to-suits. The company has developed or master-planned more than 7 million square feet of corporate industrial, tech and office projects in Southern California.

While R. Michael Murphy, Murphy Development president, is in the business of developing office, industrial high-technology and research and development space, he has stated on multiple occasions that he is most concerned that adequate housing be provided -- even if that means the loss of some industrial land on the mesa.

"We don't have an industrial land crisis, we have a housing crisis in this county," said Murphy a few months ago. "The more we can do in the city of Chula Vista, the other South County cities, and certainly Otay Mesa, the better off (we'll be)."

While Murphy awaits new housing, which could also help fuel his business parks, he has had plenty to keep him busy, and with the opening of state Route 125, plenty to cheer about.

Murphy and his fellow developers on the mesa do have a couple of things to worry about, however.

Following the collapse of a developers' consortium, new funding for the Otay Mesa Community Plan update must be found. In addition, monies also will need to be obtained to fund the infrastructure leading from Interstate 805 and state Route 125 to a third border crossing proposed for eastern Otay Mesa.

In the meantime, Murphy Development has plenty to keep itself busy.

Among other projects on Otay Mesa, the company is developing the Siempre Viva Business Park and the Brown Field Technology Park. With millions of square feet of space between them, the mesa continues to march toward build-out.

Murphy recently sold two buildings totaling 352,044 square feet at 8409 and 8917 Kerns St. for $41.6 million in Siempre Viva.

The 248,136-square-foot corporate/warehouse building at 8409 Kerns was sold for $26.97 million, while the building at 8917 Kerns is a specialized, 103,908-square-foot build-to-suit office and warehouse/manufacturing facility built for Kojima America.

The buyer of the buildings was an entity of ING Clarion Partners.

The Kojima building is the last within Siempre Viva Business Park's 590,000-square-foot Eastern Phase. The business park is home to a variety of high-profile tenants, including General Dynamics/NASSCO, UPS, Iron Mountain, Hitachi, Mattel, VF Outdoor, Bose Corp. and Pioneer Speakers.

Kerns Street has been lucrative for Murphy. Late last year, a 225,763-square-foot building occupied by General Dynamics National Steel & Shipbuilding Co. also was sold to an ING Clarion entity for $24.9 million.

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