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The Real Deal Los Angeles

UPS makes play for 90-acre Boeing site in Long Beach

Long Beach could get new distribution facility if Boeing sells to shipping company
February 28, 2019 10:00AM

A Boeing C-17 Globemaster and the main assembly building at Boeing’s Long Beach property with CEO Dennis A. Muilenburg and UPS CEO David Abney

United Parcel Service has made a bid for a large aircraft manufacturing facility in Long Beach owned by aerospace giant Boeing.

UPS said it’s been eyeing the 90-acre site since Boeing put it up for sale last fall, according to the Long Beach Press-Telegram. The world’s largest shipping company wants to turn it into a “surprise” delivery hub for the Long Beach area.

The site includes a 1.1-million-square-foot manufacturing facility where for decade Boeing built its popular C-17 Globemaster transport aircraft. The site sits next to the Long Beach Airport.

The arrangement has UPS renting the site from another entity that has put in a bid to buy it from Boeing. Boeing wouldn’t confirm that a UPS bid was in place, but Long Beach city officials told the Press-Telegram that the company has received multiple bids for the large parcel and is looking to complete a sale by the end of the year.

UPS said it would invest $300 million into the facility, employ 2,500 people there, and open within two years of taking over the site. The company has a fleet of 200 aircraft and delivers around 15 million packages worldwide each day, according to Supply Chain Digital.

Meanwhile, the city of Long Beach is pushing for aviation-related development for five parcels next door totaling 31 acres. The city said it prefers to lease out the parcels on 20- to 40-year terms.

Long Beach is currently developing a specific plan for the area that it calls the “Globemaster Corridor,” a nod to Boeing’s longtime presence. [Long Beach Press-Telegram]Dennis Lynch