Houston-based Plains All American Pipeline has sold a roughly 14.2-acre industrial development site in Long Beach for $50.7 million. Plains All American is an owner and operator of energy infrastructure.
The property which sold is located at 5900 Cherry Ave.
Newmark Group Inc.’s Andrew Briner, Jim Linn, Bret Hardy, Kevin Shannon, John McMillan and Danny Williams represented the seller in the transaction.
“The South Bay industrial market is recognized globally as one of the best performing industrial markets in the nation,” Shannon said in a statement. “It is a very supply-constrained market with limited sites for comparable new development, making it well-positioned for continued rent growth.”
The Cherry Avenue property is zoned for industrial use and could be used for a 304,432-square-foot industrial building with excess trailer parking.
“This unique project will be the newest of the top-tier buildings in the market as a result of scarcity of land and increasing barriers to entry, making 5900 Cherry Avenue a truly unique development opportunity,” Briner said in a statement.
As of the fourth quarter, the Long Beach industrial market had 19.6 million square feet of product with roughly 279,000 square feet available for lease, according to data from CBRE Group Inc.
The vacancy rate was at a mere 0.1%, compared with the Greater L.A. average of 0.5%. The lease rate in Long Beach was $1 a square foot during the quarter.
The L.A. industrial market has roughly 1 billion square feet of product and the second-lowest industrial vacancy rate in the United States, according to Newmark research. The market has seen vacancy rates of below 3% for 39 consecutive quarters.
In the fourth quarter, there was 2.9 million square feet of net absorption and 13.7 million square feet of net absorption last year, the fourth-highest year on record.
Investor interest in industrial product in L.A. County has been high.
Last year, $20.7 billion of industrial product traded hands in the county, up from $11.2 billion the previous year and $15.2 billion in 2019 before Covid-19 related lockdowns hit, according to CBRE data.