Recent sales activity is showing the strength of Orange County’s industrial market. According to a third quarter industrial market report from Kidder Mathews, two properties recently sold in the region for nearly $31 million combined.
In one transaction, a 45,780 square-foot distribution facility in Santa Ana was purchased by Fortress Investment Group for $14.275 million, or approximately $311.82 per square foot. The property is located at 2311 Pullman Street and sold to Fortress Investment Group by Gemini Industries Inc, according to the report.
Fortress Investment Group is a real estate investment management company with approximately $53.9 billion worth of commercial assets under management. The company was formed in 1998, and manages assets for approximately 1,800 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
In addition, a 20,916 square-foot industrial property at 2390 N. American Way in Orange was sold to Rexford Industrial by Richard Huntington for $16.7 million, or approximately $798.43.
Rexford Industrial is a real estate investment company focused on investing in and operating industrial properties throughout Southern California. Currently, Rexford owns 279 industrial properties, with a portfolio totaling approximately 35 million rentable square feet. Earlier in October, the company announced the acquisition of two other industrial properties as well as an 80.2-acre storage site for a combined $285.6 million. The two industrial facilities totaled 421,824 square feet.
However, Rexford Industrial and Fortress Investment are not the only companies buying up space in Southern California’s industrial market. The region has been in high demand, with Orange County, in particular, citing a 1.7 percent vacancy rate in the third quarter of 2021, compared to 2.7 percent in the third quarter of 2020, according to Kidder Mathews. At the same time, rental rates in Orange County’s industrial market have soared over the past several years. The third quarter of the year saw a new record high for the region at $1.09 per square foot. During the third quarter of 2020, asking rental rates averaged $1 per square foot.
