Marcus & Millichap Capital Corporation (MMCC) has lined up a $12.825 million acquisition loan for a 109,367-square-foot industrial building at 1111 Pioneer Way in El Cajon, giving a big-box East County facility fresh financial muscle just as the regional industrial market gets trickier to navigate. The manufacturing and distribution property includes a sizeable chunk of newly built office space along with modern loading infrastructure, and the loan structure is designed to give the buyer time to stabilize or reposition the asset in East County's industrial landscape.
As reported by Connect Commercial Real Estate, MMCC sourced the $12,825,000 acquisition financing for the 109,367-square-foot building at 1111 Pioneer Way, with senior director Kevin Elliott arranging a seven-year loan through a local credit union for a private client. The deal includes a 5.54% interest rate, a 30-year amortization schedule and a 65% loan-to-value ratio, according to the outlet. “Industrial demand across the San Diego MSA remains strong, driven by limited supply and continued tenant interest in functional distribution space,” Elliott told the publication.
Loan Terms And Property Details
The building’s configuration is tailored for modern users, with 11 loading docks, six grade-level doors and roughly 19,000 square feet of recently constructed office space, according to the property’s LoopNet listing. The asset, renovated in 2015, spans about 4.4 acres, positioning it as a fit for light-manufacturing and distribution tenants that need both power and usable yard space.
San Diego Market Backdrop
The financing lands amid a shifting San Diego industrial scene, where rising vacancy and availability are testing some owners even as tenants still chase high-function space. Market data from Kidder Mathews pegs vacancy near 9.3% in Q4 2025, with negative absorption over the year. That combination has investors gravitating to well-located, functional product that can stand out in a more competitive leasing environment.
Why Lenders Backed This Deal
Routing the loan through a local credit union highlights lender comfort with stabilized industrial assets that feature longer-term leases and tenant improvements, according to Connect Commercial Real Estate. The capital stack - a seven-year term, 30-year amortization and 65% loan-to-value - effectively buys the borrower time to work renewals, bring in new tenants or execute targeted upgrades without the immediate pressure of a refinancing clock.
For East County investors, the closing reinforces that well-configured distribution buildings near Gillespie Field and major routes are still very much in favor with capital sources. The property’s proximity to Highway 67 and Interstate 8 is expected to support leasing efforts. With the loan locked in, the new owner can shift focus to tenant retention, selective repositioning or a longer-term income hold strategy as 2026 approaches.
