Pacific Industrial, LLC Acquires 39 Acres in the Heart of LA
Deal represents the largest land sale in Central Los Angeles since 2002
City of Bell, Calif. (December 16, 2013)– CBRE announced today the largest land sale in the Central Los Angeles market since 2002 with the purchase of 39 acres of industrial land in the City of Bell, California for over $44 million. The City of Bell owned the former World War II Cheli Air Force Base GSA site, a vacant and raw undeveloped property which was entitled for 840,390 square feet of development. The Property was sold to Pacific Industrial, LLC, an industrial real estate developer based in Long Beach. CBRE’s John Privett and Cameron Merrill represented the City of Bell on the transaction.
“There is very little land available in the Central Los Angeles market, and deals of this size are extremely rare,” says Mr. Privett.
Doug Willmore, City Manager of the City of Bell, says “We were looking for a developer who could design a project that would attract employers into the City. We wanted a project that would be LEED Certified, environmentally compatible to the area and in line with the City of Bell’s focus on green development. With the help of this transaction and several others over the past 12 months, the city will significantly reduce its debt load. This is an important step forward for the City of Bell.”
The land is currently entitled for up to 840,390 square feet of new development. In the first phase of development, Pacific Industrial plans to build a Class A industrial campus on 25 acres of the land consisting of three buildings totaling approximately 550,000 square feet. In the second phase, Pacific Industrial will have the ability to deliver an approximate 300,000 square foot building adjacent to the 710 freeway, with the potential of having rail service to the site. Construction on phase one will commence immediately and is expected to be completed by October of 2014.
“The City Council has been committed to moving the City forward and their approval of this transaction represents that commitment. We see this transaction as one of the significant steps to moving Bell forward and beyond the issues of the past. We appreciate the great work that John Privett of CBRE did in marketing the property and helping us secure a deal with Pacific Industrial. We also greatly appreciate Neil Mishurda and Pacific Industrial for their hard work and commitment to partnering with the City of Bell in helping us take some very important steps to rebuild our commercial tax base,” said Mr. Willmore.
Pacific Industrial is currently entitling several million square feet of new industrial projects throughout Southern California, with 1.5 million square feet targeted to go vertical in the First Quarter of 2014.
"We believe in developing best-in-class projects for the long term that have the ability to attract some of the top employers in the country. We view that strategy as a win-win for our portfolio and the surrounding community. Pacific Industrial looks forward to following through on the vision set out by the City of Bell and delivering this incredible project to the market," said Neil Mishurda, Co-Founder of Pacific Industrial.
The new buildings, which will be marketed for lease, will be 32’ clear, state-of-the-art commerce facilities featuring significant glass line, two-story office space, above-standard skylight counts to enhance daylight, and 100% concrete yard areas. In addition, the development will feature LEED energy efficiency, including electric vehicle charging stations, solar-ready roofs, with the goal to reduce energy consumption by as much as 50%, making it one of the most energy efficient, forward thinking industrial projects in California, according to the brokers.
“This was a challenging transaction for potential buyers with many moving parts,” says Mr. Privett. “Pacific Industrial put together a strong acquisitions team to present a comprehensive business plan to the City of Bell. The City of Bell did not make their decision lightly, and after thorough review, determined that Pacific Industrial was the right choice as a buyer.”
“The current vacancy in the market is 1.9% with the availability at 7.1%,” says Mr. Merrill. “The market is very tight and tenants are starting to realize this. When touring a tenant, there used to be five to ten potential options. This has been reduced in most size ranges to two to three options. Fewer options mean more competition and we expect rent growth to happen in this market very soon.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
About Pacific Industrial
Pacific Industrial is a highly focused industrial real estate acquisition and development platform. Co-Founded by Neil Mishurda and Dan Floriani, the firm focuses exclusively on the highly competitive Southern California industrial market. Pacific Industrial currently has several million square feet of new entitlements and construction underway in the market. The company continues to actively seek new opportunities. For more information, please visit: www.Pac-Industrial.com