In an off-market transaction, Westcore Properties has purchased a 4.37-acre industrial site at 126 East Ortis Street in Compton, Calif. with the intent to build a 95,000-square-foot distribution facility.
The Class A, 32-foot clear height distribution facility will be built on an all-concrete site and feature an ESFR system and 15 to 18 dock doors. In order to accommodate most user requirements immediately upon completion, Westcore will finish approximately 3,000 square feet of speculative office space as part of the shell building construction. Groundbreaking is scheduled for September 2018, and completion is slated for second quarter of 2019.
Currently, the industrial vacancy rate in the area stands below one percent, and the pipeline of new industrial development is less than a half percent of existing supply. Industrial tenants are further challenged by a lack of land available for development.
“This project marks our first ground-up development in Southern California,” says Mike Metzger, director of acquisitions at Westcore Properties. “We believe the Los Angeles South Bay Industrial market, with its central location, proximity to the maritime ports, attractive housing options, robust labor force and a functional industrial base, will continue to be the most highly-sought-after market in the country for occupiers, investors and developers.”
The industrial market in Los Angeles and nationwide is further buoyed by the continued rise of e-commerce and other distribution users that need to be close to the ports and heavy population density. This drive to proximity is exacerbated by increasing drayage costs and consumer delivery expectations.
About Westcore Properties
Westcore Properties is a global, entrepreneurial commercial real estate investment firm with a specialized focus in Western United States commercial and industrial properties. Since its founding in 2000, Westcore Properties and its affiliates have acquired and managed more than $4 billion in industrial and office assets, comprised of more than 750 buildings and totaling over 45 million square feet. In addition to its U.S. headquarters in San Diego, Westcore Properties has regional offices in Los Angeles; Oakland; Sacramento; and Denver, as well as satellite offices in London, England; and Lausanne and Geneva, Switzerland.