Industrial Firm MDH Partners to Open SoCal Office
The firm recently closed a $1.2 billion fund to add to the 700,000 square feet it owns in California’s Inland Empire region
By Nick Trombola August 15, 2024 5:44 pm
reprints
Southern California has one of the largest and most in-demand industrial markets in the country (despite recent cooldowns) and an Atlanta-based firm wants a bigger foothold in the region.
MDH Partners is set to open a branch office in Los Angeles, alongside its offices in Atlanta and Dallas, with plans to expand its footprint across the West Coast. The firm’s new vice president of acquisitions, James Hwang, will lead the office after previously holding a similar position at Rexford Industrial Realty.
“With the twin ports of Los Angeles and Long Beach, rising population, and overall strong industrial fundamentals, California and surrounding states have been markets to watch for us for some time,” Jeff Small, MDH Partners’ CEO, said in a statement. “Establishing a Los Angeles office cements our confidence and long-term investment in this region as we remain bullish along the West Coast.”
MDH isn’t moving to California empty handed, either; apart from a $750 million Fund II, the firm also recently closed its $1.2 billion Fund III. MDH first began investing in California in 2021 and already owns about 700,000 square feet of industrial space in California’s Inland Empire region.
“We are seeking investments across the risk spectrum, from stable core-plus acquisitions to speculative ground-up development,” Hwang said.
Following years of rocketship growth, the Inland Empire’s industrial market has started to cool, with a vacancy rate of 7.2 percent this past quarter and its pool of vacant sublease space currently at a record high, according to a recent NAI Capital market outlook.
Los Angeles County’s industrial market is on a similar trajectory at the moment, with a vacancy rate of 5.3 percent this past quarter and over 8.3 million square feet of negative absorption so far this year, per NAI Capital.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
