A cold storage-focused investment firm has acquired a 350,000-square-foot warehouse in the City of Industry for $117 million, The Real Deal has learned.
Miami-based Scout Capital Partners bought the property at 17411 Valley Boulevard from an LLC linked to Los Angeles-based Seidler Equity Partners, records show. Seidler Equity Partners has not responded to a request for comment.
Scout Capital secured a $450 million, five-year credit line with a floating rate from Bank of America in connection with the property, according to documents.
Scout Capital, founded in 2017, invests primarily in cold storage facilities. The company acquired a 332,000-square-foot facility in New Jersey last year.
It remains unclear whether Scout Capital is planning to convert its latest acquisition into a cold storage facility, but it made the buy through an LLC called “Scout Cold Storage City of Industry.” That, along with the sizable line of credit attached to the deal, suggests the sort of extensive conversion required for cold storage operations could be planned.
Scout CEO and founder Vincent Signorello has not responded to a request for comment.
Seidler Equity Partners bought the property for $38.25 million in 2007, records show.
Investors have poured money into the cold storage market during the pandemic as these facilities smoothed some supply chain disruptions, allowing certain foods and pharmaceuticals to be stored for longer-than-usual periods.
Scout Capital’s purchase is one of the priciest industrial deals in Los Angeles recently — but didn’t quite hit Rexford Industrial Realty’s $217 million purchase of an 80-acre industrial storage site in Rancho Dominguez. According to Newmark, the deal in Rancho Dominguez was the most expensive sale in Los Angeles in the third quarter.