BRIDGE Celebrates over 5.5 Million SF of Development in California During 2019
Bridge Development Partners, LLC today announced that it has delivered nearly 1 million square feet of Class-A industrial product and acquired more than 4.5 million square feet of future development across California in 2019 – setting the stage for record-setting development in the state during 2020.
“2019 was a banner year for BRIDGE’s California office, as we expanded our existing portfolio and made significant additions to our pipeline of state-of-the-art industrial facilities in Los Angeles County, the Inland Empire and the Bay Area,” said Greg Woolway, Vice President of Acquisitions at Bridge Development Partners and Market Leader for BRIDGE in the Inland Empire and Bay Area. “Across California in 2019, BRIDGE successfully completed eight acquisitions in eight municipalities with a total consideration in excess of $450 million. BRIDGE has a steadfast confidence in the regional economy as well as steady industrial user demand and is ready and able to acquire many more development sites in the state. As BRIDGE's current development pipeline showcases, with irreplaceable infill sites 4 acres to over 100 acres in size, no development is too complicated or too large for BRIDGE's real estate expertise. Building on the great successes of 2019, BRIDGE's California team anticipates to continue to bolster its pipeline in 2020 and beyond."
Los Angeles County:
- BRIDGE began the year by acquiring ‘The Boxyard’, an exciting 261,528-square-foot industrial property located on 7.54 acres at 2445 East 12th Street in Los Angeles. BRIDGE acquired the campus with the value-add strategy to redevelop it into a unique destination industrial asset within Los Angeles’ burgeoning Arts District. To achieve this vision, BRIDGE has made significant enhancements to both the exterior and interior of The Boxyard to provide it with a brilliant contemporary identity that fits within its stylish urban surroundings.
- Following that acquisition, BRIDGE broke ground on Bridge Point Vernon, a site that was acquired in 2018. Also located in the heart of the central Los Angeles submarket, the 8.2-acre site is now home to a 117,360-square-foot distribution center, serving tenants seeking industrial space in close proximity to the central business district of Downtown L.A. This building was delivered in January 2020 and immediately sold to a user.
- In late 2019, BRIDGE acquired a 6.5-acre site in Santa Fe Springs just north of the Carmenita Road and Rosecrans Boulevard intersection. The site, a former chemical mixing and distribution center, will be demolished and remediated in the first half of 2020 to make way for a state-of-the-art, 150,548-square foot industrial warehouse. Santa Fe Springs is situated in the geographic center of Los Angeles and Orange County Metroplex, a strategic location in the middle of the largest industrial market in the nation. BRIDGE is excited to deliver this new project for lease or sale into the 0.8% vacant Mid-Counties industrial submarket.
- Also in late 2019, BRIDGE took down a 4-acre site in Unincorporated Los Angeles County near the intersection of I-110 and Rosecrans Blvd. The site will be home to a new 100,000 square foot industrial development that will break ground in the second quarter of 2020. The facility will be available for lease in the extremely competitive South Bay submarket.
- Finally, BRIDGE is redeveloping a formerly active asphalt refinery along the Artesia Boulevard corridor in North Long Beach. Over the course of 2019, the 75-year-old refinery was demolished, and remediation and ground improvement began at the property. BRIDGE will break ground on the vertical construction of a state-of-the-art, 416,000-square-foot warehouse facility on site in the second quarter of 2020. The building will be the largest new development of its kind in the South Bay submarket of Los Angeles.
- In April of last year, BRIDGE acquired the former Scandia Fun Center in Ontario, California. BRIDGE demolished the existing 11.9-acre Inland Empire site and is currently constructing two Class-A industrial buildings totaling 268,714 square feet. When completed in 2Q 2020, the two buildings will feature a total of 18,000 square feet of office space, as well as ample exterior docks and car parking. The two-building development will be sold on a forward-commitment basis to a major international financial fund.
- In October, BRIDGE acquired 91 acres immediately adjacent to the I-10/1-15 interchange on 4th Street in Rancho Cucamonga. BRIDGE purchased the property for $191 million in the largest non-portfolio sale in the history of the Inland Empire. BRIDGE closed on the property with a 30-day escrow period and was able to procure a $200 million construction loan prior to close.
- Situated on 32 acres on Agua Mansa Road in the County of San Bernardino, Bridge Point South Rialto is a 36' clear Class-A industrial building totaling 505,906 SF. This project was completed and sold on a forward-commitment basis to a major international financial fund in December 2019.
- In October, BRIDGE purchased 24 acres from General Electric in Oakland on International Boulevard, one mile east of I-880. The site historically was used as a transformer manufacturing facility and subsequently has had both EPA and California-DTSC oversight. Prior to the close of escrow, BRIDGE reached an agreement with the EPA and DTSC to redevelop the property while conducting environmental cleanup to the high standards of both agencies. With BRIDGE's expertise in the redevelopment of complex urban sites, groundbreaking on the new 540,000 SF building is scheduled to occur Spring 2020.
- In December, BRIDGE broke ground on Bridge Point Silicon Valley. Located in Milpitas, the 34.5-acre site will be developed into a two-building project comprised of 722,040 square feet. To be delivered 4Q 2020, Bridge Point Silicon Valley will be the largest industrial development delivered in the South Bay / Silicon Valley in 2020 and one of the largest active developments in all of Northern California.
Including the current ongoing development, BRIDGE has a total of 12 million square feet of planned development in the pipeline across California.
“Our office specializes in acquiring vacant land and existing buildings with environmental contamination or other unique development issues. From there we apply our unmatched remediation expertise and problem-solving skills to deliver well-located best-in-class infill industrial projects to select markets" stated Kevin Finnegan, Director of Acquisitions at BRIDGE and Market Leader for the Los Angeles and Orange County markets. "BRIDGE is fortunate to be aligned with a well capitalized and opportunistic focused capital partner in Banner Oak Capital Partners, L.P. The Banner Oak relationship allows the BRIDGE California team to acquire large, complex projects in short time periods, providing a valuable advantage in this ultra competitive region for industrial investment."