OC-based buyer for 60,000 sf warehouse in Pomona
North Palisades Partners pays $43.5M on edge of Inland Empire
North Palisades Partners bought a 60,000-square-foot warehouse in Pomona for $43.5 million in an off-market deal.
The Newport Beach-based industrial real estate firm purchased the 11-acre property at 2000 Pomona Blvd. from a private seller, the Los Angeles Business Journal reported. The building’s tenant will lease back the property for a year.
“We plan to continue operating the site as a low coverage warehouse facility and intend to capitalize on the high demand for warehouse, logistics and well-located truck access and parking,” Joe Mishurda, managing partner at North Palisade Partners, said in a statement. “Demand for this product type is at an all-time high with supply struggling to keep up.”
He said the warehouse property is well positioned at the western gateway to the Inland Empire, one of the tightest industrial markets in the U.S. Industrial vacancy rates in Riverside and San Bernardino counties were below 1 percent in the fourth quarter of 2021.
In comparison, Los Angeles County industrial properties saw a vacancy rate of 1.3 percent during the same period, down from 3.1 percent in 2020, according to data from Jones Lang LaSalle. Markets such as the South Bay and Mid-Cities saw vacancy rates of less than 1 percent.
Jace Gan and Clyde Stauff of Colliers International Group, based in Toronto, represented North Palisade in the deal.
“The new level of record demand in the Inland Empire proves out the need for both additional warehouse and logistics facility space,” Stauff said in a statement. “Furthermore, the Inland Empire is anticipated to be the top market in the U.S. for rent growth with an estimated 35 percent increase in rental rates over the next five years.”
North Palisade Partners, founded in 2018, has acquired more than 15 industrial and self-storage assets in the Western U.S. worth $500 million, the Journal reported. In the past 60 days, it paid $125 million to buy three industrial and self-storage properties in Southern California.
It has another $650 million in projects in its development pipeline, according to its website, after developing 4.3 million square feet of industrial space, and achieving $350 million in project capitalization since 2020.
[Los Angeles Business Journal] – Dana Bartholomew