Goodman Buys Largest Industrial Sites in Los Angeles

The Goodman Group is doubling down on the Southern California industrial market. The investor has acquired two of the largest industrial sites in the Los Angeles area. The two properties total 127 acres and include the 90-acre Boeing C-17 manufacturing facility and a 37-acre distribution facility. The two acquisitions are part of the firm’s strategy to target global gateway cities.

“Goodman has identified Southern California as a core target market due to its alignment with our global gateway city strategy,” Anthony Rozic, CEO of Goodman North America, tells GlobeSt.com. “We target land and value add sites that are close to expanding urban centers because by 2050, more than two-thirds of the world’s population will live in urban cities.”

These two assets fit perfectly into the Goodman’s acquisition strategy in that they are high quality and have access to major population centers. Goodman plans to rename the Boeing facility the Goodman Commerce Center Long Beach and the distribution facility in Los Angele Goodman Commerce Center Los Angeles. “Each location presents an extremely rare opportunity, located in heavily constrained markets offering substantial size and scale that will result in improved delivery speed to market for our customers,” says Rozic. “Access to major urban populations and key transport infrastructure provides customers with an advantage in an increasingly competitive logistics environment.”

There are tremendous opportunities for these substantial sites, including new development. However, Goodman is still ironing out the best future use. “Both properties currently have existing buildings, which provide the opportunity for re-use as well as new ground up development,” says Rozic. “Goodman is currently partnering with the City of Long Beach and Los Angeles to identify the best use for these industrial estates.”

With an extreme dearth of industrial supply in Southern California, these two properties were both highly sought after by investors. “Due to the limited supply and availability of large scale industrial sites in these locations it naturally creates a competitive environment,” says Rozic. “With approximately $35 billion of assets under management and rapidly expanding portfolio in North America, our track record of successfully closing on transactions of this scale provided the sellers and our brokerage partners confidence in our capability to quickly process and close on these transactions.”

With these two purchases, Rozic is clearly optimistic on the industrial market in Southern California. “Home to the busiest ports in the US, demand for logistics space in Southern California will remain strong as it services Southern California’s growing population and continued growth in e-commerce and last mile delivery in a very supply constrained environment,” he says.