The Goodman Group doubles in the Southern California industrial market. The investor has acquired two of the largest industrial locations in the Los Angeles area. The two properties total 127 acres and include the 90-acre Boeing C-17 manufacturing facility and a 37-acre distribution facility. The two acquisitions are part of the company's strategy to target global gateway cities.
"Goodman identified Southern California as a key target market because of its alignment with our global Gateway City strategy." Anthony Rozic, CEO of Goodman North America, told GlobeSt.com. "We are targeting land and value-adding locations that are close to urban center expansion, as more than two-thirds of the world's population will live in urban cities by 2050."
These two assets are a perfect fit with Goodman's acquisition strategy as they are high quality and have access to key population centers. Goodman plans to rename the Boeing facility at Goodman Commerce Center Long Beach and the distribution facility at Los Angele Goodman Commerce Center Los Angeles. "Each location presents an extremely rare opportunity as it is in severely constrained markets and is of considerable size and size that results in improved delivery speeds for our customers," says Rozic. "Access to large urban populations and major transportation infrastructures gives customers an advantage in an increasingly competitive logistics environment."
There is tremendous opportunity for these significant locations, including new developments. However, Goodman is still ironing out the best future use. “Both properties currently have existing buildings that offer the possibility of reuse and new building development,” says Rozic. "Goodman is currently working with the City of Long Beach and Los Angeles to determine the best uses for these industrial areas."
Due to the extreme lack of industrial supply in Southern California, these two properties were in high demand with investors. “Due to the limited supply and the limited availability of large industrial sites at these locations, a competitive environment is of course created,” says Rozic. "With approximately $ 35 billion in assets under management and a rapidly growing portfolio in North America, our track record of successfully completing transactions of this magnitude has put our sellers and brokerage partners confident in our ability to process and complete those transactions quickly."
With these two purchases, Rozic is clearly optimistic in the Southern California industrial market. "Demand for logistics space in Southern California, home to the busiest ports in the United States, will continue to be strong as it drives the growing population of Southern California and the continued growth of e-commerce and last mile delivery in a very limited environment Serving the offer, "he says.