Ocean West Capital Buys California Industrial Portfolio for $100M
Inland Empire properties were constructed this year and are currently available for lease
Yet another industrial portfolio sale has closed in the country’s busiest industrial market.
Ocean West Capital Partners announced that it acquired four logistics properties in California’s Inland Empire, as well as another in Central Valley, totaling 1.83 million square feet for nearly $100 million.
The Inland Empire portfolio comprises four industrial outdoor storage (IOS) facilities that together total 921,729 square feet on 21.2 acres of land in San Bernardino and Fontana. The properties were constructed this year and are currently available for lease.
“The Inland Empire is one of the most sought-after markets within the IOS sector given the limited available supply and proximity to major logistics users and the ports of Los Angeles and Long Beach,” Ocean West principal Ryan Tucker said.
Ocean West also closed on an off-market sale leaseback for a 908,000-square-foot advanced manufacturing property in Hanford, Calif. The facility is the manufacturing headquarters for luxury electric vehicle company Faraday Future.
Ocean West said it has completed over $7 billion in commercial real estate transactions since forming in 2010. An investment group led by the El Segundo-based firm and Tiger Alternative Investors sold a seven-property industrial portfolio spread across the Sun Belt and Northeast U.S. for nearly $1 billion last year.
The Inland Empire remains one of the nation’s most profitable industrial markets despite a recent slowdown in activity, according to a third-quarter market report by Kidder Mathews.
A reduction in consumer spending, lethargic international trade and increased supply of new industrial space contributed to negative net absorption and rising vacancies in the region this quarter, per Kidder Mathews. But the market is expected to stay balanced heading into the new year because of the region’s proximity to major ports, an already large and growing population and diverse economy.
Nick Trombola can be reached at NTrombola@commercialobserver.com.