Rreef Acquires 650,000-SF Portfolio

ANAHEIM, CA-Rreef has acquired a 647,398-sf portfolio of industrial buildings here and in Los Angeles County from TA Associates of Boston on behalf of an institutional client, according to Mark Carlson, managing director in the San Francisco office of Rreef. Called the Southern California Industrial Park Portfolio, the group of properties includes one industrial park in Anaheim, one in Tustin and one in the City of Industry.

The Anaheim property is called the Tri-Freeway Business Park at 2115 W. Crescent Ave. in Anaheim and consists of 10 buildings. The Tustin property is the two-building Dow Avenue Industrial Park, and the Los Angeles County property is the 15-building John Reed Commerce Center at 1200 John Reed Court in the City of Industry.

Terms of the acquisition were not disclosed. Industry sources tell GlobeSt.com that estimating the price is difficult, but they say the deal is easily well into the tens of millions of dollars in light of prices being paid for quality industrial properties in Southern California.

Rreef, which was represented by David Hasbrouck of Cushman Wakefield in this latest deal, has been adding to its Southern California portfolio both through acquisitions and via development projects. In January, for example, the investment adviser acquired three class A office buildings in Ontario totaling 273,261 sf in one of the largest office market sales in the history of the Inland Empire, according to CB Richard Ellis.

The portfolio that Rreef bought in that deal included the eight-story, 150,014-sf One Lakeshore Centre, widely considered to be the Inland Empire's most prominent office property. Late last year Rreef announced a joint venture with San Francisco-based Newcastle Partners that will develop warehouse and distribution buildings of 387,000 sf and 198,000 sf at a project called Alabama Industrial Center in Redlands, another Inland Empire city. Construction of the 585,000-sf project is due to be completed in February 2008.