Newcastle Partners has secured land sites to develop three new industrial facilities in Southern California. The developer acquired parcels in Anaheim, Norco and Corona for more than $16 million with plans to build of last-mile facilities. The three properties will be developed on a speculative basis.
Newcastle Partners acquired 3855 E. La Palma in Anaheim for $6.1 million. It will demolish a 41,000-square-foot office building to make way for a 40,000-square-foot class-A industrial property, which is scheduled to deliver in 2023. Rick Ellison and Randy Ellison of Cushman and Wakefield brokered the deal.
In Norco, Newcastle acquired a 4.2-acre land site at 1004 Parkridge Ave. for $4.3 million. The developer will build five, class-A industrial buildings totaling 80,000 square feet of space with delivery scheduled in late 2022. Richard Schwartz of Colliers International brokered the deal.
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Finally, in Corona, the firm acquired 203 N. Maple Street, a 2.54-acre land site for $6.2 million. It will develop a 50,000-square-foot class-A industrial building to deliver in 2023. Ryal Lal at Voit Co. brokered the transaction.
There continues to be fervent demand for last-mile industrial properties in the Southern California region. In the first half of the year, Los Angeles and the Inland Empire of Southern California were the top US industrial markets, according to data from Real Capital Analytics. Los Angeles netted $3.2 billion in activity for the first half of 2021, 13% higher than its previous record level at a midyear. The Inland Empire also rocketed up three slots to the number two slot, registering $2.527 billion in sales and posting six transactions of $100 million or higher. Of note was Costco's $345 million purchase of a distribution facility in the IE that was the highest price ever paid for an industrial asset in the region.
As a result, these markets also lead the way in rent increases. The Inland Empire saw rent grow by 7.1% over the last 12 months, while LA posted an increase of 6.7% over the same period, according to data from Yardi Matrix. And, vacancies were only in at 2% for the IE earlier this year, according to data from JLL.
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Kelsi Maree Borland
