Blackstone’s Link Logistics Sells LA Distribution Center

2411 Santa Fe Ave. sold for $45.7 million. Image courtesy of CommercialEdge

Terreno Realty Corp. has completed its $45.7 million purchase of a two-building, 112,000-square-foot infill industrial property located in Redondo Beach, Calif.

The seller was Link Logistics, a subsidiary of Blackstone, according to CommercialEdge data.

The assets, located at 2411 Santa Fe Ave., were built in 1968 and consist of a 67,000-square-foot transshipment facility, alongside a 45,000-square-foot industrial flex building. Link Logistics picked up the assets in 2016 for $20.7 million, the same source indicates.

The former building, fully occupied by DSD Trucking, holds 14- to 18-foot clear heights, 23 dock-high loading doors and one for grade level uses. Aerospace giant Northrop Grumman is the latter facility’s sole tenant. The properties, built up over 6.7 acres, are flanked by 200 car parking spaces.

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An Orange County-based Colliers team consisting of Vice Chair Michael Kendall, Senior Vice President Gian Bruno, Vice President Kenny Patricia, Senior Executive Vice President Jeffrey Smart and Senior Associate Elizabeth Capati oversees leasing at the complex.

The property is within one of the South Bay’s largest industrial districts, roughly a quarter mile to the west of the Interstate 405, and within 4 miles of Los Angeles International Airport. Space Park, a 5 million square foot microelectronics manufacturing plant operated by Northrop Grumman is located across Redondo Beach Avenue. Los Angeles Air Force Base, home to one of the company’s largest clients, sits 2 miles to the northwest. Downtown Los Angeles, accessible through an interchange to Interstate 105, lies 13 miles to the northeast, and the Ports of Los Angeles and Long Beach are roughly equidistant to the southeast.

According to Terreno Realty’s website, the latest acquisition brings the publicly traded REIT’s portfolio around Los Angeles to 55 buildings spanning over 2.8 million square feet.

At the heart of an industrial powerhouse

With $2.3 billion in year-to-date sales as of August and a $346 price per square foot, Los Angeles retains one of the nation’s most valuable industrial markets, according to a recent CommercialEdge report. Its total transaction volume and average rent over this period are second only to the Inland Empire, according to the report.

Some recent industrial deals around the City of Angels include the $54 million sale by a joint venture between Staley Point Capital and Bain Capital Real Estate of two properties totaling 116,000 square feet, at a price per square foot slightly below the state’s average. Earlier this summer, Rexford Industrial Realty spent $210 million on a 595,304-square-foot property in the city’s Mid-Counties submarket.