How Liberty Property Keeps Growing SoCal Industrial Portfolio

The Los Angeles industrial market may be one of the tightest markets in the country. With a sub 1% vacancy rate in some areas, tenants and investors face high competition for deals. Liberty Property Trust recently added a 12^th property to its Southern California industrial portfolio with the acquisition of newly developed 100,580 square foot warehouse in Gardena, California. While the market is very competitive, the investor has been able to grow its portfolio here by considering all opportunities.

“It is very difficult to find opportunities in Southern California as most owners are reluctant to part with assets in this market,” Erin Plourde, VP of Acquisitions at Liberty Property Trust, tells GlobeSt.com. “It is even more difficult to find opportunities that allow for a value add component,” As this deal was a forward purchase we were able to benefit from the lease-up risk. I wouldn't say we are consistently winning deals, but do continue to chase all opportunities.”

Although the property is new construction, it is already fully leased to Air Fayre, a British-based in-flight catering logistics firm. Located at 1720 W. 135th Street, the property features 5,000 square feet of high-finish, two-story office space with 32-foot clear height, 16 dock-high loading positions, an ESFR sprinkler system and a 130-foot secured truck court. “This was an off market deal where a broker put us directly in touch with the owner,” adds Plourde.

Liberty is bullish on the Southern California market because of the strong fundamentals and the soaring demand, and it is continuing to grow its portfolio here. “The fundamentals continue to be strong in Southern California, with very tight vacancy rates and continued rental growth,” explains Plourde. “The demand drivers in the market also continue to remain strong: ecommerce, last-mile and port traffic. We are long term holders of real estate and are looking to continue to expand our Southern California holdings, so will hold onto this building.”

The Los Angeles industrial market may be one of the tightest markets in the country. With a sub 1% vacancy rate in some areas, tenants and investors face high competition for deals. Liberty Property Trust recently added a 12^th property to its Southern California industrial portfolio with the acquisition of newly developed 100,580 square foot warehouse in Gardena, California. While the market is very competitive, the investor has been able to grow its portfolio here by considering all opportunities.

“It is very difficult to find opportunities in Southern California as most owners are reluctant to part with assets in this market,” Erin Plourde, VP of Acquisitions at Liberty Property Trust, tells GlobeSt.com. “It is even more difficult to find opportunities that allow for a value add component,” As this deal was a forward purchase we were able to benefit from the lease-up risk. I wouldn't say we are consistently winning deals, but do continue to chase all opportunities.”

Although the property is new construction, it is already fully leased to Air Fayre, a British-based in-flight catering logistics firm. Located at 1720 W. 135th Street, the property features 5,000 square feet of high-finish, two-story office space with 32-foot clear height, 16 dock-high loading positions, an ESFR sprinkler system and a 130-foot secured truck court. “This was an off market deal where a broker put us directly in touch with the owner,” adds Plourde.

Liberty is bullish on the Southern California market because of the strong fundamentals and the soaring demand, and it is continuing to grow its portfolio here. “The fundamentals continue to be strong in Southern California, with very tight vacancy rates and continued rental growth,” explains Plourde. “The demand drivers in the market also continue to remain strong: ecommerce, last-mile and port traffic. We are long term holders of real estate and are looking to continue to expand our Southern California holdings, so will hold onto this building.”