Turnbridge Equities Pays $7.1M Per Acre for Industrial Site in LA’s South Bay
Property previously sold in July 2019 for $10.5 million
By Greg Cornfield May 8, 2023 4:40 pm
reprints
Real estate investment and development firm Turnbridge Equities is betting on Southern California’s industrial growth, and announced Monday it put down $25.5 million for a 3.6-acre site in Los Angeles’ South Bay.
The deal is equal to nearly $7.1 million per square acre for the property at 19500 Rancho Way in the Rancho Dominguez community, according to a press release. The company said it expanded its industrial outdoor storage portfolio but did not reveal future plans for the existing 52,951-square-foot Laurel Park Commerce Center on the property.
The property previously traded in July 2019 for $10.5 million, and for $3.9 million in September 2011.
“The scarcity of available industrial land in the market, coupled with the growing demand for industrial outdoor storage, makes this acquisition a compelling opportunity for us, and we look forward to unlocking the value of this property,” Jack Hechinger, vice president of acquisitions for Turnbridge Equities, said in a statement.
The company further explained its attraction to the property next to the Alameda Rail Corridor for its proximity to the ports of Los Angeles and Long Beach, and that it’s within two miles of Interstates 710 and 405 and State Route 91. The South Bay submarket has a 0.8 percent industrial vacancy rate, and the space in Rancho Dominguez has a 0.2 percent vacancy rate. The national U.S. vacancy rate is 3.7 percent.
“The acquisition of this prime site in Rancho Dominguez aligns perfectly with our strategic vision of expanding our industrial outdoor storage strategy in port-adjacent, infill and high barrier to entry markets,” Michael Gazzano, managing director of West Coast investments for Turnbridge Equities, said in a statement. “In addition to the proximity to the ports and railyards, this site serves a population of 14.3 million people within a one-hour drive time.”
New York City-based Turnbridge has over $2 billion of assets under management across two managed funds.
Gregory Cornfield can be reached at gcornfield@commercialobserver.c
