Newport Beach, CA-based North Palisade Partners, an industrial investment and development firm with assets across Southern California, announced it acquired an 11-acre site in Pomona, CA for nearly $43.5 million from a private seller. Located at 2000 Pomona Blvd., the low coverage industrial site features an existing 60,000-square-foot warehouse facility with excess trailer parking in an eastern Los Angeles County location that borders the Inland Empire.

The property sits off the 71 freeway near the junction of the 10 and 57 freeways, making it an ideal spot for logistics operators serving the entire SoCal region. The convenient location allows for easy access to Ontario International Airport, Downtown Los Angeles, Orange County’s John Wayne Airport, the Port of Long Beach and Los Angeles, and Los Angeles International Airport.

North Palisade Partners’ Joe Mishurda, Managing Partner, said, “We plan to continue operating the site as a low coverage warehouse facility and intend to capitalize on the high demand for warehouse, logistics and well-located truck access and parking. Demand for this product type is at an all-time high with supply struggling to keep up.”

Colliers’ Jace Gan, Executive Vice President, Greater Los Angeles, and Clyde F. Stauff, SIOR, Senior Executive Vice President, Greater Los Angeles, represented North Palisade Partners in the off-market deal. The building’s current occupant plans to lease-back the property for approximately one year.

Mishurda added, “We expect this logistics facility to be well-received because the site is situated at the gateway to the Inland Empire, one of the tightest industrial markets in the U.S. The project also fits North Palisade’s long-term strategic objectives to build a portfolio of industrial assets through acquisition, development or management of value-add opportunities.”

While Pomona is in Los Angeles County, it can be considered part of the overall Inland Empire sphere of influence due to its similar characteristics and proximity to the Inland Empire West submarket. Vacancy rates in the Inland Empire dropped below one percent in Q4 2021, spurred by an increase in both renewal activity and aggressive leasing. User demand, combined with historically low vacancy have pushed asking lease rates for industrial warehouse to record highs.

“The new level of record demand in the Inland Empire proves out the need for both additional warehouse and logistics facility space,” notes Colliers’ Stauff. “Furthermore, the Inland Empire is anticipated to be the top market in the U.S. for rent growth with an estimated 35% increase in rental rates over the next five years.”

This acquisition aligns with North Palisade Partners’ strategy to add industrial assets to its portfolio that feature well-located sites within its core markets across the West. The company’s growth plans include key logistics markets in Southern California, Northern California, Las Vegas, Reno, Seattle, Portland, and Phoenix.

North Palisade has acquired three industrial and self-storage development properties across the Southern California region for a total of $125 million in the past 60 days, with more than $500 million of additional deals under contract.