XEBEC ACQUIRES 10 ACRES IN KEY GREATER LOS ANGELES INFILL MILE LOCATION
Company to Develop a Speculative Warehouse in Submarket with Extremely Low Vacancy and High Demand for Industrial Real Estate in Los Angeles
Dallas and Los Angeles (September 6, 2018) – Xebec TM announces the purchase of a 10-acre infill/last mile industrial site in the Southern California Mid-Counties submarket of greater Los Angeles. The company plans to develop a 233,789 square-foot Class-A industrial warehouse as part of a joint venture with one of the largest private equity investment firms in the United States.
“We were attracted to this opportunity because this site is located in a submarket with a vacancy rate of less than 1 percent with a seemingly insatiable demand for warehouse space,” said Jay Soni, Executive Vice President of Acquisitions at Xebec. “This modern Class-A warehouse will help meet the demand from companies who are eager to expand into the region to service the Greater Los Angeles market.”
The site is located at 8201 Sorensen Avenue in Santa Fe Springs in an industrial pocket northeast of the intersection of Interstate 5 and Interstate 605. According to CoStar, the 5-mile radius around the site is home to over 494,000 residents. It is within 20 miles from the Los Angeles and Long Beach port complexes, and less than 8 miles from the Union Pacific and BNSF Class-1 railyards.
Xebec anticipates it will begin construction of the site in Q2 2019 with a 12-month construction timeline. The planned industrial warehouse will have 36-foot clear heights and ESFR sprinklers, and feature 270 parking spaces. “The recent focus on and demand for infill/last mile fulfillment centers like this planned warehouse has greatly strained the building supply in the Mid-Counties submarket,” said Soni. “We anticipate that vacancies will remain extremely low and rents will continue to rise in future quarters, even as more supply comes online.”
According to research from CBRE, the overwhelming influence of eCommerce has permanently altered the industrial supply chain. Increased urbanization and population growth through the greater Los Angeles and Orange County regions are driving demand for infill locations by users such as package delivery services and Third Party Logistics (“3PLs”). Xebec anticipates that Sorensen XC and its other projects like Washington XC, Medford XC and Boyle at 54th XC will help meet the high demand from eCommerce and light industrial users in the Los Angeles infill urban market.
XebecTM is a privately held real estate investment platform that provides vertically integrated and full-service real estate acquisition, development, ownership, financing, leasing, property management and real estate investment management services. With over 30 years of industrial real estate development and investment operations, the company focuses on fulfillment, warehouse and distribution centers (bulk logistics), light industrial and infill/last-mile properties located primarily in U.S. coastal and inland logistics markets with major port and rail terminals, and trucking intermodal infrastructures. For more information, visit https://xebecrealty.com/.