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
    Pasadena Mayor Victor Gordo with the 710 stub (City of Pasadena, Google Maps)
    Returned 710 Freeway parcel in Pasadena apt for development
    Returned 710 Freeway parcel in Pasadena apt for development
    Related Companies CEO Jeff Blau and Related's Justin Metz with the Godfrey Hotel Hollywood (Getty, Related, GodfreyHotelHollywood.com, iStock)
    Related spends $115M on stake in new Hollywood hotel
    Related spends $115M on stake in new Hollywood hotel
    Prologis' Hamid Moghadam and 8819 E Edison Ave in Ontario (Google Maps, Prologis)
    Prologis gets option on 177 more acres in Ontario Ranch
    Prologis gets option on 177 more acres in Ontario Ranch
    Assembly Majority Leader Eloise Gómez Reyes (47th Assembly District, iStock)
    Inland Empire industrial developers dodge a bullet — for now
    Inland Empire industrial developers dodge a bullet — for now
    Crow Holdings CEO Bob McLain and 2524 S Lilac Avenue (LinkedIn, Google Maps)
    Dallas outfit spends $72M on industrial in Inland Empire
    Dallas outfit spends $72M on industrial in Inland Empire
    From left: 17877 & 17875 Von Karman Ave in Irvine, PGGM CEO Edwin Velzel and MetLife CEO Michel Khalaf (LoopNet, PGGM, MetLife)
    MetLife, PGGM buy Irvine creative office in biggest OC deal of year
    MetLife, PGGM buy Irvine creative office in biggest OC deal of year
    LaTerra Development's Charles Tourtellotte with 4112 Del Rey Avenue (LinkedIn, Loopnet)
    LaTerra buys Marina del Rey office complex
    LaTerra buys Marina del Rey office complex
    FS Investments' Michael Forman and Tishman Speyer's Rob Speyer with 555 South Aviation Boulevard (Tishman Speyer, LoopNet, iStock)
    Tishman Speyer notches priciest LA office sale of year
    Tishman Speyer notches priciest LA office sale of year
    arrow_forward_ios

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

    Loading...