Chula Vista, California, October 16, 2025
News Summary
Chula Vista is seeing simultaneous growth in traditional self‑storage and grid battery assets. UTEX Storage Partners secured a $23.4 million nonrecourse construction loan to build a 123,582 sq ft Chula Vista Storage facility on a 9.3‑acre site. The city approved Wellhead Electric’s 50 MW Chula Vista Energy Center 2 using 56 temperature‑controlled battery containers with third‑party fire oversight. San Diego‑based EnerSmart is also deploying multiple smaller utility‑scale battery projects across the county to support grid stability. Nearby homeowners oppose a proposed recreational storage site by Eastlake High School, seeking public review and hearings.
UTEX lands $23.4M construction loan as Chula Vista and regional battery projects move forward; local Eastlake neighbors push back on a separate storage plan
What just happened: A development loan worth $23.4 million has been arranged to build a new self‑storage campus in Chula Vista, while separate large‑scale battery storage projects are advancing around the region. At the same time, homeowners in an Eastlake neighborhood are mobilizing against a proposed recreational storage facility near their homes.
Top line — financing and major projects
UTEX Storage Partners secured a four‑year, floating‑rate nonrecourse construction loan of $23.4 million to build Chula Vista Storage. The loan was arranged through a life insurance company and put together by a team led by Brian Somoza of JLL. The facility is expected to deliver in 2016 as reported in the project record and will include 123,582 square feet of storage across two three‑story buildings on a 9.3‑acre parcel near the South Bay Expressway and Eastlake Drive, about 12 miles southeast of downtown San Diego.
What the UTEX facility will offer
The planned site will include an on‑site office, 24‑hour surveillance, controlled access, climate‑controlled units and space for boat and RV storage. A third‑party REIT management platform will operate the property once it opens.
Battery storage projects gaining ground
Separately, a larger utility‑scale battery project called the Chula Vista Energy Center 2 cleared city approval and will be developed by Wellhead Electric Company. The council approved a 50‑megawatt system to be installed on a parcel that already hosts a gas power plant built in 2000. The installation will use containerized lithium‑ion batteries and will be located at 3497 Main St., between Del Monte Avenue and Reed Court. The northern section of that site will house the battery system and will operate independently of the gas plant to the south.
The Wellhead project will use 56 temperature‑controlled containers with supporting transformers, switchgear and substation upgrades. A second phase will add containers over time to offset capacity loss so the site keeps a total of 50 MW. The work cleared city safety reviews, including fire department and engineering checks, and will follow state and federal codes under third‑party fire engineer oversight. The developer is financing construction privately and estimates the project cost at about $75 million. The design will use Tesla Megapack 2 hardware and lithium iron phosphate (LFP) chemistry, which the developer describes as a safer, more stable option than some older battery chemistries. City officials reviewed safety carefully because of experience with older facilities that experienced fires; the system will be outdoors, spaced to reduce fire spread and subject to fire department input.
Regional battery rollout from a local company
A San Diego–based firm, EnerSmart Storage, is rolling out a network of smaller grid‑support battery stations around the county. EnerSmart develops, owns and operates systems that stabilize the grid and support utility‑scale renewables by charging during excess generation and discharging at peak times. Their early Chula Vista project is a six‑megawatt system that cost about $7 million to build and is cited as able to power roughly 3,000 homes each hour. EnerSmart says its projects typically cost about $1 million per megawatt, vary in scale, and are sited next to substations to connect with local circuits.
EnerSmart has multiple projects planned or in development across the county, including Alpine, Ramona, El Cajon, La Mesa, Spring Valley, Imperial Beach, Mesa Heights and Carlsbad. Site sizes range from similar six‑MW systems to larger builds; one La Mesa site is described as roughly three times larger than the Chula Vista unit. The company says projects create local jobs during construction, can repurpose vacant or underused sites, add property tax revenue, and reduce reliance on older peaker plants by providing nearly instant response to changing grid needs. EnerSmart leaders say they coordinate with local fire departments and have emergency plans and measures to address fire‑related risks and community questions about electromagnetic effects.
Local opposition to a separate Eastlake storage plan
At the neighborhood level, homeowners in Eastlake are opposing a proposed recreational storage facility planned for a vacant parcel between Eastlake High School and a gated townhome community. The plan would add boat, car and container storage close to homes. Residents express concern that the development could lower property values and attract undesirable activity, and they have circulated flyers and pursued a public hearing through the city planning process. City planning staff control the scheduling of a public meeting and, as of the latest update, a date had not been set for public comment.
Why this matters now
These projects together show two parallel trends: continued demand for self‑storage development with outside construction capital, and rapid rollout of battery systems intended to help integrate renewables and stabilize the grid. The Wellhead 50‑MW project is a much larger grid asset with higher cost and regulatory scrutiny, while smaller county projects from EnerSmart aim to add distributed capacity in key local circuits. Community response varies — some residents support cleaner, more reliable power or new development, while others raise concerns about safety, property impacts and local land use.
Timing and context notes
Reported dates include both earlier and current timelines. The UTEX facility is described as delivering in 2016 in the project record, which is inconsistent with later timelines tied to battery projects in 2024 and beyond; the dates are reported as they appear in project materials. EnerSmart has targeted construction starts for several projects across 2024, with some sites planned to begin in early 2024 and others later in the year.
What to watch next
- Public hearing schedule and planning approvals for the Eastlake recreational storage proposal.
- Construction milestones and safety inspections for the Wellhead 50‑MW battery site and EnerSmart projects planned around the county.
- Operational details from the UTEX project once the asset is turned over to the third‑party management platform.
Frequently Asked Questions
What is the size and cost of the new self‑storage project in Chula Vista?
The project is reported to be 123,582 square feet across two three‑story buildings on 9.3 acres. Construction financing for the project was arranged at $23.4 million. The project record lists a delivery year of 2016.
Who is financing the storage and battery projects?
The Chula Vista self‑storage deal used a life insurance company as the construction lender for a floating‑rate, four‑year nonrecourse loan arranged by a JLL team. The Wellhead battery project is privately financed by the owner. EnerSmart is backed by private equity partners and finances its projects with a mix of private capital.
How big is the Wellhead battery project and where will it be located?
Wellhead Electric will develop a 50‑megawatt containerized lithium‑ion battery installation at 3497 Main St., on a site that already hosts a gas plant from 2000. The system will use 56 temperature‑controlled containers and supporting electrical equipment, with a second phase planned to replace capacity loss over time.
Are battery systems safe?
Developers and city reviewers say these projects follow state and federal codes, undergo fire department and engineering reviews, and use spacing and system design to limit fire risk. Some developers favor LFP chemistry and purpose‑built containers to improve safety. Local fire departments are involved in review and emergency planning.
What is EnerSmart doing in the region?
EnerSmart is deploying several small to medium battery sites across San Diego County that provide frequency control and local circuit support for the independent system operator. Their projects range in size and aim to charge during excess renewable generation and discharge at peak times.
Key features at a glance
| Project | Owner / Developer | Size / Capacity | Estimated Cost | Location | Key features | Timeline |
|---|---|---|---|---|---|---|
| Chula Vista Storage | UTEX Storage Partners (loan arranged by JLL) | 123,582 sq ft; two three‑story buildings | $23.4M construction loan | Near South Bay Expressway & Eastlake Drive (9.3 acres) | On‑site office, 24‑hr surveillance, controlled access, climate control, boat/RV storage | Reported delivery year: 2016 (as stated in project record) |
| Chula Vista Energy Center 2 | Wellhead Electric Company | 50 MW (56 containers) | Approx. $75M | 3497 Main St. (northern portion of site with existing gas plant) | Containerized LFP batteries, transformers, substation upgrades, fire reviews | City approved; construction privately financed |
| EnerSmart regional projects | EnerSmart Storage, LLC | Varies; Chula Vista project ~6 MW; other sites larger/smaller | Approx. $1M per MW (est.) | Multiple San Diego County sites (Alpine, El Cajon, La Mesa, etc.) | Substation‑adjacent BESS containers, frequency control, local grid support | Staggered starts planned across 2024 and beyond |
Deeper Dive: News & Info About This Topic
Additional Resources
- REBusiness Online: UTEX Storage Partners receives $23.4M construction financing for Chula Vista self-storage
- Wikipedia: Self-storage
- San Diego Union-Tribune: Chula Vista approves 50-megawatt battery storage project
- Google Search: Chula Vista 50 MW battery storage
- The EV Report: Chula Vista EV fast-charging hub launches
- Google Scholar: Chula Vista EV fast charging hub
- The Star News: Chula Vista battery storage facility a template for others
- Encyclopedia Britannica: battery energy storage
- 10News: Eastlake homeowners fight city’s plans for storage facility
- Google News: Eastlake storage Chula Vista homeowners
Author: Construction CA News
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