$52M Buys 545,000-SF Storm Properties Portfolio

Tony Thompson, chairman and chief executive officer of Thompson National, describes the portfolio as a preeminent collection of industrial assets. Thompson National Properties received a commission and advisory fee; Kevin Shannon of CB Richard Ellis introduced TA Associates to Thompson National Properties.

"This is a good deal for both parties because it shows that there is long-term confidence in the industrial and commercial real estate sectors in Southern California and that cash flow allows companies to take advantage of the current market conditions," said David Simard, vice president of Storm Properties. "This transaction provides Storm Properties the opportunity to diversify and acquire new properties in different asset classes in Southern California that include office, multi-family and retail."

Storm Properties Inc. is a division of Storm Industries Inc., one of the oldest continuously operated companies in Southern California, which began as a manufacturing concern in 1932 when industrialist Walter Storm established a brass foundry, later expanding into other related areas of manufacturing. Over the years, the company assembled extensive land holdings, and in the mid-1980s it began developing industrial buildings in the Torrance area. Industrial properties and land for industrial development in Torrance and other parts of the South Bay have become highly sought after for distribution and logistics operations in recent years for their location near the ports of Long Beach and Los Angeles.

Storm's evolution from a manufacturing firm to a developer of industrial properties came about in a way that parallels the evolution of the Southern California economy over the decades. The company originally acquired land primarily to have sites available for manufacturing facilities, but as conditions changed and manufacturing became less viable in the Southland, Storm slowly moved its manufacturing offshore and looked for other uses for its properties.