REAL ESTATE NEWS

The Chula Vista, Calif., trade area will soon see its first self-storage facility delivered since 2018, helping to boost what JLL calls an “extremely underserved” market. It's a part of a surge in credit that's helping spur developments like this nationally.

JLL Capital Markets last week arranged $23.44 million in non-recourse construction financing for Chula Vista Storage, a 1,284-unit facility near the intersection of South Bay Expressway and Eastlake Drive, about 12 miles southeast of downtown San Diego.

UTEX Storage Partners was the borrower/developer, securing a four-year, floating-rate, non-recourse construction loan through a life insurance company for the project with an anticipated 2026 delivery.

The 123,582-square-foot asset on 9.35 acres will be within two three-story buildings. It will have climate-controlled units, an on-site office, a 24-hour surveillance system and boat/RV storage.

Chula Vista is a densely populated area with more than 125,000 residents within a three-mile radius and hosts an average household income of more than $168,000.

JLL Senior Managing Director Brian Somoza led the debt advisory team representing the borrower.

“We are seeing credit spreads compress to record lows as the bench of lenders continues to grow—from traditional banks and life companies to private credit funds—aggressively competing for opportunities,” Somoza told GlobeSt.com.

“This surge in available debt isn't just for stabilized assets; it’s fueling development and special situations, signaling strong confidence from the lending community in the sector’s enduring performance.”

Yardi Matrix called California a national leader in self-storage construction, with much of the new development concentrated in the Southern part of the state. The San Diego metro saw a year-over-year rent decline of -0.9% for main unit types in September 2025, according to Yardi. The month-over-month rate change was -0.9%. The new supply under construction was 1% of the existing inventory.

Source: GlobeSt/ALM