Newport Beach-based industrial investment and development firm North Palisade Partners has acquired an 11-acre site in Pomona for $43.5 million.
A private seller sold the land at 2000 Pomona Blvd.
The site houses a low coverage industrial property with a 60,000-square-foot warehouse. It also has excess trailer parking.
Joe Mishurda, managing partner at North Palisade Partners, said the property would continue to operate as is.
“We plan to continue operating the site as a low coverage warehouse facility and intend to capitalize on the high demand for warehouse, logistics and well-located truck access and parking,” he said in a statement. “Demand for this product type is at an all-time high with supply struggling to keep up.”
The building’s current tenant will lease back the property for one year.
Colliers International Group Inc.’s Jace Gan and Clyde Stauff represented North Palisade Partners in the off-market deal.
In the fourth quarter, L.A. industrial properties saw a vacancy rate of 1.3%, down from 3.1% the year prior, according to data from Jones Lang LaSalle Inc. Markets such as the South Bay and Mid-Cities saw vacancy rates of less than 1%.
Meanwhile, asking rents during the quarter were $1.12 on a triple net basis, up 15 cents over the previous year, according to JLL data.
“We expect this logistics facility to be well-received because the site is situated at the gateway to the Inland Empire, one of the tightest industrial markets in the U.S.,” Mishurda said in a statement. “The project also fits North Palisade’s long-term strategic objectives to build a portfolio of industrial assets through acquisition, development or management of value-add opportunities.”
Pomona is situated in L.A. County but, according to North Palisade Partners, can also be considered part of the “Inland Empire sphere of influence due to its similar characteristics and proximity to the Inland Empire West submarket.”
Vacancy rates in the Inland Empire were below 1% in the fourth quarter.
“The new level of record demand in the Inland Empire proves out the need for both additional warehouse and logistics facility space,” Stauff said in a statement. “Furthermore, the Inland Empire is anticipated to be the top market in the U.S. for rent growth with an estimated 35% increase in rental rates over the next five years.”
North Palisade Partners has been adding industrial assets to its portfolio in the Western United States, focusing on markets including Southern California; Northern California; Las Vegas; Reno, Nev.; Seattle; Portland, Ore., and Phoenix.
In the past 60 days, the company acquired three industrial and self-storage development properties in Southern California for $125 million. North Palisade Partners has an additional $500 million worth of deals under contract.
The company, which was founded in 2018, has acquired more than 15 industrial and self-storage assets to date worth $500 million.
