Longpoint Realty Partners struck the most expensive industrial deal of the year, paying $80 million for a four-building complex in Van Nuys.
The Boston-based investment firm has spent $80 million on properties at 16161 Raymer Street totaling 85,000 square feet plus about four acres of surrounding land, according to public property records. Adele Poliquin, a Westlake Village-based investor, sold the property.
Longpoint secured a three-year, $52 million loan from Prime Finance as part of its purchase, according to JLL, which brokered the deal on Longpoint’s behalf.
In total, the resort spans nearly 12 acres, which means the deal comes in at around $6.8 million per acre.
That’s nearly double a recent deal in Long Beach, where Blackstone spent $3.6 million per acre to buy a 14-acre site for redevelopment. That’s about two and a half times what Rexford paid per acre for an 80-acre industrial storage site in the South Bay that he doesn’t plan to redevelop.
Longpoint plans to redevelop the complex, which includes four small buildings built in the 1960s and 1970s as well as land used for truck and trailer storage, meaning the company will have to spend millions more on renovations.
The purchase signals Longpoint’s continued optimism for the industrial market – it is betting that demand for new industrial properties will remain high and rents will remain higher.
According to JLL, about 0.6% of industrial space in the greater San Fernando Valley — which counts Van Nuys as a central neighborhood — was vacant in the first quarter of this year. Average monthly asking rent for warehouses was about $1.43 per square foot last quarter, a 25% jump from the first quarter of 2021, according to Lee & Associates.
In November, Longpoint closed a $669 million fund to invest in neighborhood industrial and commercial properties, aiming to take advantage of the two asset classes that have performed well during the pandemic.