Terreno Realty submits winning bid to acquire 5.1-acre parcel despite City of Carson’s temporary ban on certain industrial uses
CARSON, CA – Dec. 30, 2017 – With a mandate to have the property sold by year’s end without sacrificing price, coupled with a temporary moratorium on certain types of industrial development in the largely industrialized Los Angeles County municipality of Carson, Colliers International recently put the finishing touches on a $12.9 million transaction that not only met, but exceeded, the expectations of property owner Wilson Industries.
A Colliers team led by Senior Vice President Patrick Barnes, which confidently accepted the challenging assignment 120 days ago, developed a marketing strategy for the 5.1-acre parcel of land that generated nearly two dozen offers from a broad base of industrial buyers and local users despite the city’s temporary ban on certain industrial uses. Terreno Realty Corp., a publicly traded real estate investment trust (REIT) that owns and operates industrial properties in six major U.S. coastal markets, tendered the winning bid.
“With the city’s temporary moratorium on logistics structures, hazardous materials facilities, container storage yards, and container parking, there was still no shortage of demand for this port-adjacent, infill industrial land,” said Barnes, who represented Wilson Properties, a subsidiary of Distribution Now. “Not only did our team accept the challenges put forth by the owner just 120 days ago, but, as it turned out, we knew, despite the city’s current moratorium, buyer interest would be high, and it was. Surety of closing was as important as achieving a market price and our team processed and delivered on both.”
Among the bidders for the property, which is located at 2315 E. Dominguez St., just 10 miles from the twin deep-water ports of Los Angeles and Long Beach, were institutional investors, publicly traded and privately owned real estate investment trusts, individual investors, and owner-users. The result was top-of-market pricing for his client, Barnes noted, and a plethora of well-qualified, potential buyers who could close quickly. The property also has direct access to the San Diego (I-405) and Long Beach (I-710) freeways and the rail-served Alameda Corridor, all major surface transit hubs for container shipping.
“Never in my career has demand for infill industrial property been this high, vacancies so low, and market forces so positive,” said Barnes. “Even with a temporary moratorium on certain types of uses imposed by this city, those who did bid were willing to play the odds that this property, with its almost ideal location and configuration, would continue to be in high demand from corporate users in need of infill land. It’s hard to see an end to demand of port adjacent industrial land given the macroeconomic demands our country is currently experiencing.”
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