SANTA MONICA, Calif. – BLT Enterprises, a multi-faceted real estate investment company, has acquired seven industrial and creative office properties for a total of $130 million. Located throughout Los Angeles County, Orange County, and San Diego County, California, the acquisitions total nearly 270,000 square feet of buildings on more than 18 acres of land.
The firm was able to capitalize on its local expertise and long-standing, trusted industry relationships to identify and acquire these premier assets throughout the Southern California market, according to Lukas Huberman, Director of Acquisitions.
“Utilizing our seasoned team’s investment and market acumen, BLT saw the opportunity to expand our footprint in the Southern California markets where we actively own and manage creative office and industrial properties,” says Huberman. “Leveraging our deep experience and local relationships, we plan to implement our proven capital improvement strategies and hands-on management procedures across the assets to unlock long-term value and enhance operations.”
The outlook for creative office and industrial space remains strong throughout the Southern California markets. As the post-pandemic return to the office is under way, creative office development and occupancy rates are forecasted to improve, while the industrial space continues to be a superior performer across Southern California. With no slowdown in sight, the steady demand for industrial space has driven vacancy rates to all-time lows, and Southern California vacancy rates remain below 2%.
In the wake of hybrid/remote work and tightening development and operational constraints shifting workplace environments, owners and tenants are facing fresh challenges. As a forward-looking owner and operator, BLT is blazing the trail for the new era of office and industrial space, according to Rob Solomon, Chief Development and Legal Officer at BLT Enterprises.
“Having developed or acquired more than $2 billion in assets to date, our experienced team and thoughtful development strategy set the foundation for BLT’s exceptional track record of success in industrial and creative office real estate,” explains Solomon. “These acquisitions are directly in line with our ongoing strategy of acquiring well-located properties that deliver value over a long hold period. With the recent post-pandemic shifts, BLT’s grasp on the unique demands of today’s office and industrial space positions us to continue growing and adapting with our tenants and to develop long-lasting business relationships.”
The seven properties include:
621 Hawaii St., El Segundo, California (purchase price: $27,350,000, ~ $555 per square foot)
A 49,307 square-foot creative office building situated on 1.97 acres, 621 Hawaii St. is fully leased to Nexon America Inc., South Korea’s largest video game developer. Located in the El Segundo submarket, the property is positioned just minutes from the Los Angeles International Airport between the Raytheon and Northrop Grumman buildings in El Segundo’s aerospace and defense sector. As the city undergoes rapid renovation and adaptive reuse, the region continues to be one of the most sought-after markets in Southern California, with a highly diverse tenant base.
7748 Industry Ave., Pico Rivera, California ($4,200,000, ~ $404 per square foot)
A 10,400 square-foot warehouse building on 0.85 acres, 7748 Industry Ave. is located off Interstate 5 in the desirable Pico Rivera submarket of East Los Angeles. This low coverage site is anticipated to fulfill the high demand of distribution and outdoor storage facilities within greater Los Angeles.
2901 Thornton Ave., Burbank, California ($5,850,500, ~ $571 per square foot)
A 10,246 square-foot warehouse building situated on 0.8 acres, 2901 Thornton Ave. is located off Interstate 5, just minutes from the Burbank Airport. This well-situated asset is fully leased to Reno Hardware. Due to its low coverage and proximity to the rapidly growing Burbank studio market, the asset is positioned to deliver long-term value.
6368 and 6374 Arizona Circle, Los Angeles, California ($6,141,500 & $7,190,000, respectively, ~ $890 & $888 per square foot)
6368 Arizona Circle is a 6,900 square-foot creative office building on 0.32 acres, and 6374 Arizona Circle is an 8,100 square-foot creative office building on 0.32 acres.
Located off Interstate 405 in Playa Vista, 6368 and 6374 Arizona Circle are ideally positioned in the submarkets “techtainment” ecosystem. BLT is bullish on the creative office sector and targets the acquisition of properties within desirable Los Angeles submarkets like Playa Vista. As the demand for creative office space surges, the Arizona Circle assets align directly with BLT’s effective investment strategy and will meet an underserved need for quality workplaces within the area.
3539 Howard Way, Costa Mesa, California ($23,250,000)
3539 Howard Way is a 12,620 square-foot warehouse building on an oversized 3.02-acre industrial lot. Located adjacent to an existing BLT-owned industrial property operated by FedEx, the currently vacant property offers ample opportunity to utilize the under-coverage site to meet the escalating transportation and logistics demands of Orange County.
1 Viper Way, Vista, California ($26,100,000, ~ $149 per square foot)
A 175,000 square-foot distribution facility on 11.07 acres, 1 Viper Way is located within the Northern San Diego industrial region. BLT is a firm believer in the resiliency of California’s warehouse and distribution market. Capitalizing on their knowledge and extensive relationships in the San Diego area, BLT was able to secure this stabilized asset within the robust industrial sector.
About BLT Enterprises
Headquartered in Santa Monica, Calif., BLT Enterprises was founded in 1984 and is a multi-faceted real estate development and investment company with an exceptional track record of success in industrial and commercial real estate. The firm has developed or acquired more than $2 billion in assets to date. BLT Enterprises specializes in the acquisition, entitlement, development, operation, and property management of industrial, office, retail, mixed-use and special-use properties
