Pacific Industrial, an industrial real estate development and acquisition platform based in Long Beach, has purchased a 9.8-acre lot in the City of Industry for $44 million on which it plans to build a warehouse distribution facility spanning 215,000 square feet.

The facility, located at 17969 Railroad St., will be called Pacific Railroad Center.

“Our tenants are not just looking for a location to warehouse products,” Bo Prock, director of acquisitions at Pacific Industrial, said in a statement. “They care about site functionality for inbound and outbound product, ease of access, energy efficiency and creating great working environments for their employees.”

Situated adjacent to the 60 Freeway – in the heart of the San Gabriel Valley between downtown Los Angeles and the Inland Empire – the site offers easy access for distribution. 

“Although we believe the greater Los Angeles market will remain undersupplied given the barriers to entry, it is more important than ever to match the right design with the right location,” Prock said. “In doing so, we will provide needed facilities to the market and create outperforming investment opportunities for our capital partners.”

The land was acquired by means of a short-term sale leaseback – an arrangement in which the company that sells an asset can lease back that same asset from the purchaser. In this case, the seller was Reuland Electric, a manufacturer of electric motors.

At closing, Pacific Industrial executed a one-year lease with Reuland to operate on the property as Reuland winds down operations.

Upon expiration of the lease, Pacific Industrial will tear down and carry out a complete redevelopment of the property to build its new speculative project: a Class A industrial project, including amenities such as EV charging stations, solar-ready roofs, parking for cars and trailers, and a two-story glass-entry office.

Pacific Industrial plans to begin construction on the new warehouse facility next year and to complete the project in 2025. It will then go on the market for lease in which one tenant will likely take over the property.

Pacific Industrial’s current portfolio includes tenants such as Relativity, HydraFacial, Amazon, FedEx, JD.com and BNSF Railway.