Overton Moore Raises $150M to Buy California Industrial Assets
By Nick Trombola July 29, 2024 12:31 pm
reprints
One of the top developers of industrial properties in the Western U.S. is about to add even more stock to its growing footprint.
Torrance, Calif.-based Overton Moore Properties (OMP) has raised $150 million in new equity capital to obtain industrial and logistics buildings throughout the Golden State, the firm announced Monday. Coupled with financng leverage, OMP has a piggy bank of $300 million in acquisition capital to build out its portfolio.
“While we remain committed to development, the regulatory and political environments in California continue to make development more challenging, particularly in infill markets,” Pete Cassiano, OMP’s chief investment officer, said in a statement. “We believe this dynamic creates an excellent opportunity to expand our capabilities to acquire and manage core assets for cash flow and long-term appreciation.”
Founded in 1972, OMP has over the decades molded a stable of over 20 million square feet of industrial properties across Northern and Southern California, as well as Phoenix, Las Vegas and Salt Lake City.
“This capital allows us to acquire existing core assets, currently at historically favorable pricing, in the best markets in California,” Timur Tecimer, OMP’s CEO and managing partner, added.
The industrial market in California is one of the largest in the country. That’s particularly true of Southern California’s Inland Empire region, which houses over 700 million square feet and counting. Yet demand for space there has cooled recently, with the region’s vacancy rate reaching 7.2 percent this past quarter, the highest rate seen since the end of the Great Recession, according to NAI Capital.
Development there has also slowed, with the completion rate declining by 9 percent from the first quarter of 2024 to the second quarter.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
