Maximizing Investments in Long-Term Holds

Severson: “Core investing, by its definition, lacks the value-add opportunity we bring to bear in our office redevelopment projects. The two investment strategies complement each other quite well.”

ANAHEIM, CA—Seeking out high-demand infill locations where buildings will best retain their value and appeal to tenants as existing leases expire is one strategy Bixby Land Co. uses for its industrial investments, the firm’s EVP and chief acquisitions office Mike Severson tells GlobeSt.com. As we recently reported, Bixby recently acquired a 121,341-square-foot industrial building at 1400 Allec St. here for $18.2 million from Alere Property Group in an all-cash transaction. The acquisition follows a deliberate increase in core industrial investments by Bixby, which seeks leased, institutional-grade industrial projects in the $15-million-to-$50-million range in primary West Coast markets, Arizona and Nevada. We spoke with Severson about the firm’s industrial strategy and if there’s any crossover between it and the company’s previous creative-office strategy.

GlobeSt.com: In long-term hold industrial scenarios, how do you maximize your investment?