Real estate services firm Newmark recently announced it had arranged the sale of Torrance Technology Campus — an industrial business campus in Torrance, Calif., totaling 575,976 square feet of Los Angeles industrial space in the center of the South Bay real estate market.
The property spans five light industrial buildings — of which three are interconnected — and is situated on a 27-acre site at 3100-3110 Lomita Blvd. and 3121 Skypark Drive. A Newmark team comprised of Kevin Shannon, Scott Schumacher and Ken White represented the seller, Torrance FRM LLC. The buyer — Rexford Industrial — was self-represented.
Torrance Technology Campus is 90% leased to three credit tenants, with Florida-based aerospace and defense tech company L3Harris occupying 80% of the property. In fact, L3Harris signed a lease extension and expansion in 2016, which also included a $40 million investment in campus infrastructure by the company. The neighboring Torrance Memorial Medical Center is also among the campus’ tenants.
“This 27-acre, industrial-zoned parcel in Torrance provides inherent long-term value with scale that is nearly impossible to replicate in this mature infill market,” Shannon said. “The tech campus also produces current long-term returns that are more than double those found in the industrial market today from an investment-grade tenant.”
Schumacher added, “Given the limited opportunities to acquire industrial land in the South Bay market and the recent massive run-up in land values, industrial investors and developers have increasingly sought covered-land-plays to secure opportunities like this for future redevelopment.”
Rexford also recently acquired the property at 8210-8240 Haskell Ave. in Van Nuys, Calif., for $12.4 million, doubling down on its investment in industrial space in the Greater Los Angeles area. The Van Nuys property includes three vacant industrial buildings totaling more than 53,000 square feet of industrial space on 2.3 acres, with convenient access to the 405 Freeway and Van Nuys Airport. Rexford reportedly plans to modernize the property to attract tenants.