Blackstone eyes industrial redevelopment in Long Beach

Firm pays $51M for 14 acres in sale-leaseback deal with Plains All American

Los Angeles /
Mar.March 10, 2022 02:45 PM
Blackstone’s Kenneth Caplan and Kathleen McCarthy with 5900 Cherry Avenue (Blackstone, Newmark)

Blackstone plans to add to the dwindling supply of industrial real estate in Los Angeles after snapping up a 14-acre site for redevelopment.

The New York-based institutional investor paid $50.7 million–or $3.6 million per acre–on the deal in Long Beach, records show. Newmark announced the deal but did not disclose the buyer.

Plains All American, a crude oil and natural gas transportation firm, sold the property and will lease it back through at least mid-October, according to lease documents filed with Los Angeles County.

Blackstone is planning to build a 304,000-square-foot industrial building on the site, located at 5900 Cherry Avenue, which is already zoned for general industrial use. The new development would replace a storage structure currently on the site.

The South Bay is a “very supply-constrained market with limited sites for comparable new development,” Newmark’s Kevin Shannon, who represented the seller, said in a statement.

Plains All American has been selling off a number of its industrial properties, moves that come amid soaring industrial land prices over the last few years.

In 2020, the Houston-based company sold an 80-acre industrial storage site in Rancho Dominguez to Zenith Energy, which then sold the property to Rexford Industrial Realty for $217 million. Rexford then leased the property back to Zenith and Plains All American for 20 years, records show.

Blackstone’s acquisition comes as the L.A. industrial market faces extremely low vacancies. Around 150 percent more space was taken up by tenants than was brought to market in the fourth quarter of last year, according to Newmark.

In Long Beach, around 257,200 square feet of space was under construction during the same time period.

The deal is familiar territory for Blackstone, which has been pouring money into the industrial sector. Last month, the company scored $415 million in refinancing for 110 industrial properties across 15 U.S. markets.





    Related Articles

    arrow_forward_ios
    Bridge Industrial founder and CEO Steve Poulos and 4885 East 52nd Place in Vernon (Google Maps, Bridge Industrial)
    Bridge Industrial picks up 8 acres in Vernon
    Bridge Industrial picks up 8 acres in Vernon
    BentallGreenOak Sonny Kalsi and Stream Realty's Lee Belland and Mike McVean with 10380 Alder Avenue (LinkedIn, Stream Realty Partners, LoopNet)
    Newly built Inland Empire warehouse fetches $83M
    Newly built Inland Empire warehouse fetches $83M
    LuMar's Babak Nehoray with10756 W Wilkins Ave (Avvo, Labyrinth)
    Developers plan five-story apartment building in place of single-family home in Westwood
    Developers plan five-story apartment building in place of single-family home in Westwood
    Pasadena mayor Victor Gordo and attorney general Rob Bonta (iStock, Rob Bonta, City of Pasadena, Illustration by Kevin Cifuentes for The Real Deal)
    Pasadena withstands AG’s slings and arrows on SB 9
    Pasadena withstands AG’s slings and arrows on SB 9
    Clockwise from top left: Harrison Street CEO Christopher Merrill, 2825 Santa Monica Boulevard, Stockdale Capital Partners' Steven Yari and Shawn Yari and 9090 Wilshire Boulevard (Harrison Street, Stockdale Capital Partners) 
    Harrison Street buys Westside medical offices for $156M
    Harrison Street buys Westside medical offices for $156M
     1933 South Broadway (Loopnet, iStock)
    Ara Tavitian scores $150M refi on The Reef in DTLA
    Ara Tavitian scores $150M refi on The Reef in DTLA
     Spirit Realty's Jackson Hsieh with   5038 West Avenue North (Real Share Net Lease, Loopnet)
    Texas investor seeks premium on sale of Antelope Valley retail
    Texas investor seeks premium on sale of Antelope Valley retail
    East End Capital's Jonathon Yormak and David Peretz and the southeastern corner of South Alameda Street and 6th Street (East End, Google Maps)
    East End Capital plans second studio complex in Arts District
    East End Capital plans second studio complex in Arts District
    arrow_forward_ios

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

    Loading...