Bridge Logistics Pays $109M for Two Industrial Properties in L.A. Area

The industrial real estate arm of Bridge Investment Group is tightening its grip in Southern California this year after adding another pair of warehouses to its portfolio. 

Bridge Logistics Properties (BLP) paid a combined $109 million for a two-property, 450,000-square-foot industrial portfolio in the City of Industry, according to PropertyShark records. The deal is equal to more than $242 per square foot, which is a little higher than the current market value for most office tower space in Downtown Los Angeles.

Blackstone subsidiary Link Logistics sold the fully-leased warehouses — together dubbed the San Jose 2-Pack — at 18305 San Jose Avenue and 18501 San Jose Avenue for $60 million and $49 million, respectively. A spokesperson for Link Logistics did not immediately respond to a request for comment.

JLL’s Patrick Nally, Ryan Spradling, Evan Moran and Makenna Peter represented Link Logistics and announced the deal but did not disclose the value of the transaction. Packaging supplier 8-Net, Hot Topic and BoxLunch occupy 18305 San Jose Avenue, while plus-size clothing retailer Torrid occupies 18501 San Jose Avenue.

“The [portfolio] offers attractive near-term income coverage, institutional-quality functionality, and strategic positioning in one of Southern California’s most supply-constrained markets,” Grant Moore, BLP vice president of west region investments, said in a statement. “With limited new development in the San Gabriel Valley, we believe these assets are well positioned for rent growth and long-term performance.”

The San Gabriel Valley is home to some of the most in-demand industrial submarkets in the country with a vacancy rate of just 2.4 percent, per BLP.

Yet BLP has also been active in the adjacent Inland Empire region, including with its $83.5 million purchase of a fully leased distribution complex in San Bernardino County in July. One month previously, BLP landed a $354.6 million refinancing loan tied to a 24-property portfolio spanning nearly 2.5 million square feet across six states, including in California.

“[The San Jose 2-Pack] acquisition aligns with our broader strategy of targeting high-performing logistics assets in supply-constrained, high-demand infill markets,” Paul Jones, BLP managing director, added in a statement. “By remaining disciplined in our investment approach and leveraging deep relationships, we continue to identify opportunities that balance immediate income with long-term value creation across our portfolios.”

Nick Trombola can be reached at ntrombola@commercialobserver.com.