Blackstone plans so as to add to the dwindling provide of business actual property in Los Angeles after snapping up a 14-acre website for redevelopment.
The New York-based institutional investor paid $50.7 million–or $3.6 million per acre–on the deal in Lengthy Seashore, data present. Newmark introduced the deal however didn’t disclose the customer.
Plains All American, a crude oil and pure fuel transportation agency, offered the property and can lease it again by means of no less than mid-October, in response to lease paperwork filed with Los Angeles County.
Blackstone is planning to construct a 304,000-square-foot industrial constructing on the location, positioned at 5900 Cherry Avenue, which is already zoned for basic industrial use. The brand new improvement would exchange a storage construction at present on the location.
The South Bay is a “very supply-constrained market with restricted websites for comparable new improvement,” Newmark’s Kevin Shannon, who represented the vendor, mentioned in an announcement.
Plains All American has been promoting off a variety of its industrial properties, strikes that come amid hovering industrial land costs over the previous few years.
In 2020, the Houston-based firm offered an 80-acre industrial storage website in Rancho Dominguez to Zenith Vitality, which then offered the property to Rexford Industrial Realty for $217 million. Rexford then leased the property again to Zenith and Plains All American for 20 years, data present.
Blackstone’s acquisition comes because the L.A. industrial market faces extraordinarily low vacancies. Round 150 p.c more room was taken up by tenants than was dropped at market within the fourth quarter of final yr, in response to Newmark.
In Lengthy Seashore, round 257,200 sq. ft of house was underneath building throughout the identical time interval.
The deal is acquainted territory for Blackstone, which has been pouring cash into the commercial sector. Final month, the corporate scored $415 million in refinancing for 110 industrial properties throughout 15 U.S. markets.
