A joint venture partnership of RanchHarbor and Manhattan West Real Estate recently acquired a .79‐acre value-add industrial property in Signal Hill in an off-market transaction. The price was undisclosed but the JV purchased the asset substantially below replacement cost and at a desirable basis.

The property consists of two single-tenant industrial buildings. Each building has one dock-high door and one grade-level door; the latter in high demand for tenants in this size range.

The JV acquired one building with substantial term remaining on the lease and one building vacant at closing. The business plan is to perform deferred maintenance and capital improvements to the property, including white boxing of the vacant building to improve its marketability. The JV has retained Marc Bonando and Brad Connors with Kidder Mathews to market and the lease the available space.

“This is a rare opportunity to invest in Signal Hill, a submarket with extremely low vacancy rates and a short supply of industrial spaces of this size and specifications,” said John Meek, managing principal at RanchHarbor. “The property is an excellent addition to RanchHarbor’s growing portfolio as we continue to find undervalued opportunities in the small cap sector with proven operating partners that know their markets well.”

The subject property is located at the northeast corner of Walnut Avenue and E. Burnett Street within the highly supply-constrained South Bay industrial submarket. The South Bay continues to be one of the largest and most active industrial submarkets in Los Angeles, with a diverse base of tenants from biotech to media to aerospace.