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3/19/24
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Bixby Land Company has established its Bixby Industrial Fund 1. The recapitalization portfolio consists of five industrial properties, two located in Mira Loma, CA, two in Phoenix, AZ and one in Atlanta, GA. Goldman Sachs Alternatives and an Ares Management Real Estate Secondaries fund are equity investors in the newly established fund.
The initial portfolio consists of five industrial properties totaling more than 836k sf of leasable space. The properties are currently 100% leased to a total of ten tenants with a weighted average lease term of 2.4 years. The favorable loss to lease at these properties provides an opportunity for the investors to realize significant rental growth on their investment.
Geographic representation is evenly divided among California, Arizona, and Georgia. The Atlanta property is the largest in the portfolio at 281k sf. According to Newmark’s National Industrial Conditions and Trends report for Q4 2023, industrial assets smaller than 300k sf account for the largest share of leasing activity and the lowest vacancy rates.
Accord Group Holdings LLC served as the exclusive financial advisor to Bixby Land Company in this transaction.
“We believe the industrial market is poised to continue its outperformance of other real estate segments, particularly traditional office,” commented Michael Severson, CIO of Bixby Land Company. “The fundamentals of slowing supply of new construction, positive demographic shifts in Bixby’s target geographies, and secular rise of e-commerce in a post-COVID economy made this past year an ideal time to launch and close this transaction.”
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