March 10, 2022 9:00 AM
Newmark[1]
announces it has facilitated the sale of a 14.19-acre industrial development site in Long Beach, California for $50.7 million.
Newmark Executive Managing Directors Andrew Briner, Jim Linn and Bret Hardy and Co-Head of U.S. Capital Markets Kevin Shannon
represented the seller, along with Vice Chairman John McMillan and Senior Managing Director Danny Williams. The seller was Plains All American Pipeline, a publicly traded owner and operator of energy infrastructure that provides logistics services for crude oil and natural gas.
“The South Bay industrial market is recognized globally as one of the best performing industrial markets in the nation,” said Shannon. “It is a very supply-constrained market with limited sites for comparable new development, making it well-positioned for continued rent growth.”
Briner added, “This unique project will be the newest of the top-tier buildings in the market as a result of scarcity of land and increasing barriers to entry, making 5900 Cherry Avenue a truly unique development opportunity.”
The property, located at 5900 Cherry Avenue in Long Beach, measures 14.19 acres, and is zoned IG for general industrial use. The site has the potential for a 304,432-square-foot industrial building with best-in-class features including 36’ minimum clear heights, ESFR sprinkler systems, ample truck courts and significant excess trailer parking.
5900 Cherry Avenue is optimally located in the geographic center of nearly 18 million consumers throughout the five-county greater Los Angeles metropolitan area. The property is less than five miles from the Long Beach Airport and provides tenants with express access to the San Diego (I-405), San Gabriel (I-605) and Long Beach (I-710) freeways.
The property is also centrally located between Los Angeles International Airport and John Wayne Airport—both within 22 miles. 5900 Cherry Avenue is also coveted for its proximity to the two busiest container ports in North America—the Port of Long Beach and the Port of Los Angeles. Located roughly 14 miles from the property, the ports handle 37% of all waterborne goods entering the United States and 60% of goods imported from China.
According to Newmark Research, the Los Angeles industrial market totals 1.05 billion square feet and has the second-lowest industrial vacancy rate in the U.S., at 1.1% as of year-end. Its vacancy rate has remained below 3.0% for 39 consecutive quarters. During the fourth quarter of 2021, quarterly net absorption totaled 2.9 million square feet, bringing the 2021 absorption total to 13.7 million square feet, the fourth-highest year on record.
[1]
Dba Newmark Knight Frank in California
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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