Link Logistics sold a two-building industrial portfolio in the Gateway Cities to Bridge Logistics Properties.
New York-based Bridge Logistics bought the adjacent properties, at 18501 and 18385 San Jose Avenue in City of Industry, for $109 million Commercial Search reported. Seller Link Logistics, a Blackstone portfolio company, had acquired the assets in 2017 as part of a $395 million, 20-property deal.
The building at 18501 San Jose Avenue spans 199,200 square feet, and it sold for $49 million, or $246 per square foot. It was developed in the 1980s, and plus-sized apparel retailer Torrid is a major tenant.
The second building, at 18385 San Jose, spans 250,000 square feet and sold for $60 million, or $240 per square foot. Packaging, shipping and janitorial supplies company 8NET partially occupies the building.
JLL’s Patrick Nally, Ryan Spradling, Evan Moran and Makenna Peter represented Link Logistics in negotiations.
Though Link Logistics’ exact purchase price for the two buildings wasn’t disclosed, Bridge Logistics said in a statement that it bought the properties at a significant discount from peak pricing and replacement cost.
The goal in this acquisition for Bridge was to pick up more “high-performing logistics assets in supply-constrained, high-demand infill markets,” said Managing Director Paul Jones.
Vacancy rates across the Los Angeles industrial market are on the rise, increasing to 4.8 percent in the third quarter, the highest level in the past decade, according to Cushman & Wakefield.
Conditions are tighter in the San Gabriel Valley, which includes City of Industry, with 3 percent vacancy in the submarket at the end of the third quarter. The submarket saw positive absorption of about 778,000 square feet last quarter and nearly 2.2 million square feet so far this year. City of Industry is especially competitive with a vacancy rate of 2.4 percent.
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