Morgan Stanley buys Torrance warehouse for $103M

The bank’s Prime Property Fund acquired the 500k sf building from Bridge Development, after a separate deal fell through

Los Angeles /
May.May 16, 2018 08:05 AM
Bridge’s founder and CEO Steve Poulos and Bridge Point South bay at 20333 S. Normandie Avenue in Torrance

The search is over.

Bridge Development Partners found a buyer for a massive Torrance warehouse property nine months after what looked like a quick deal for the new building fell through.

The Chicago-based investor announced this week it sold the recently completed 512,500-square-foot Bridge Point South Bay at 20333 S. Normandie Avenue for $102.5 million. The buyer is Morgan Stanley’s Prime Property Fund, according to Real Capital Analytics. The fund invests in core assets around the country.

The deal figures out to around $201 per square foot, roughly what was expected when Bridge listed the warehouse in August while it was still under construction. The most recent deal makes it the third highest industrial sale in the country this year by that metric.

Cushman & Wakefield brokers Jeff Chaite, Jeffrey Cole, Ed Hernandez, and Mike Adey represented both sides in the deal.

Bridge purchased the 20.4-acre site in 2016 from a former tenant and redeveloped it, with 176 trailer parking spaces and 56 dock doors. The warehouse also includes a flexible 20,000-square-foot office space.

Bridge Development got a bite from Denver-based Industrial Property Trust about a week after listing it last summer. That sale fell through at some point. And it was unclear when Morgan Stanley stepped into the picture.

It’s no surprise that the property quickly attracted buyers and sold at a premium. It’s located in the heart of the South Bay submarket that includes El Segundo, Hawthorne, and other industrial hot spots. It’s situated near Interstate 405 and Interstate 110, about halfway between Los Angeles International Airport and the ports of Los Angeles and Long Beach.

The area is nearly fully developed, according to Colliers International. It found that average asking rents of $0.82 per square foot in the first quarter of this year were the highest ever, and expected that to continue to rise. Vacancy rates in the first quarter of this year were around 1.5 percent.


Related Articles

arrow_forward_ios
15301 Springdale Street and Crown Associates president Mitchell Bloom. (LinkedIn, CBRE)
SARES REGIS sells Orange County warehouses to Crown Associates for $35.3 million
SARES REGIS sells Orange County warehouses to Crown Associates for $35.3 million
Goodman CEO Greg Goodman and a rendering of the facility. (Goodman)
Goodman’s massive logistics center will target e-commerce tenants
Goodman’s massive logistics center will target e-commerce tenants
(Getty, iStock)
SoCal industrial boom may prompt tighter air quality regulations
SoCal industrial boom may prompt tighter air quality regulations
Clarion Partners CEO David Gilbert and Trammell Crow CEO Mike Lafitte. (The Center at Needham Ranch, Clarion Partners, Trammel Crow)
DrinkPAK gulps down 400K sf at Needham Ranch complex
DrinkPAK gulps down 400K sf at Needham Ranch complex
Rexford Co-CEOs Howard Schwimmer and Michael S. Frankel and Quixote CEO Mikel Elliott. (Google Maps, Rexford, Quixote)
Rexford Industrial inks studio and equipment firm to big lease
Rexford Industrial inks studio and equipment firm to big lease
Intercontinental’s Jessica Levin and PGIM’s David Hunt with 20730 Prairie Street (Google Maps, iStock)
Amazon-leased warehouse sells for $74M
Amazon-leased warehouse sells for $74M
Senior Vice President of Duke Realty, Nancy Shultz. (Google Maps, Duke Realty)
Duke Realty makes industrial buy in City of industry
Duke Realty makes industrial buy in City of industry
Prologis CEO Hamid Moghadam and 1920 West Baseline Road (Google Maps)
Prologis signs digital services firm to sprawling warehouse lease in Inland Empire
Prologis signs digital services firm to sprawling warehouse lease in Inland Empire
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...