Los Angeles, October 31, 2022 – North Palisade Partners, a development and investment firm focused on industrial, industrial outdoor storage (IOS), and self-storage properties, broke ground on Palisade Santa Fe Center, a 58,999-square-foot, Class A industrial property in Vernon, CA. The site at 5655 Santa Fe Ave. is located in Southern California’s Central Los Angeles submarket, southeast of Downtown Los Angeles.
Joe Mishurda, Managing Partner of Los Angeles-based North Palisade Partners, said, “There is a tremendous lack of industrial supply in Los Angeles with vacancies dropping under 1% in this submarket. This sized building is in the ‘sweet spot’ for the Central Los Angeles submarket as users are exhibiting a healthy appetite for properties in 50,000- to 100,000-square-foot size range in L.A. Demand is expected to remain strong for industrial assets in SoCal’s infill markets driven by a diverse mix of tenant requirements including last-mile logistics and cold storage users. North Palisade has experienced success with a similarly sized building in Commerce.”
The site is ideally located in one of the nation’s tightest industrial markets, blocks from critical rail yards and intermodal facilities for Union Pacific and BNSF, as well as the ports of Los Angeles and Long Beach. Vernon is also one of the most active infill submarkets of Southern California. The property is situated on a corner lot at Santa Fe and 57th, a central Alameda Corridor location that is expected to appeal to a broad user base.
CBRE’s Jack Mergenthaler, SIOR, Jeff Stephens, SIOR and Evan Crawford are handling the leasing assignment for the development. Herdman Architects is the project architect, while PREMIER Design + Build Group is serving as general contractor. Palisade Santa Fe Center is set for completion in Summer 2023.
Mergenthaler notes, “We are confident Palisade Santa Fe Center’s unique Vernon location will attract a wide variety of tenants ranging from cold storage, warehousing or manufacturing companies who’ll find favor with the city’s business-friendly approach, as well as the property’s central location. We also think it is the perfect time to bring this property to market since availability and vacancy rates are below 1%, which should generate immediate leasing activity.”
Palisade Santa Fe Center will offer modern attributes required at logistics buildings. It will feature 32-foot clear heights, a 150-foot secured truck court, 9,500 square feet combined, of two-story office and mezzanine space, more than 55 parking spaces, ESFR sprinklers, six dock-high loading positions, three trailer parking stalls, and 1,200 AMPS of power.
Mishurda adds, “This project is a great addition to our rapidly expanding portfolio in core Western U.S. supply chain and logistics markets. It is down the street from a self-storage development in Huntington Park we are just putting the finishing touches on and allows us to increase our platform in one of the key U.S. industrial markets of Los Angeles.”
In 2022, North Palisade has added eight industrial, IOS, and self-storage development properties to its portfolio with a total capitalization of approximately $225 million. Currently, North Palisade has eleven projects under development, inclusive of five industrial buildings, four IOS projects and two self-storage facilities for a total capitalization exceeding $265 million. Additionally, the company has nearly $500 million of projects under contract in key logistics markets in Northern California, Southern California, and Las Vegas.