By Jon Peterson
Dallas-based Invesco Real Estate is going through a boom in the development of new logistics properties in California. The real estate investment firm now has more than three million square feet of assets either under construction or recently completed throughout the Golden State, according to sources familiar with the company’s activities.
These developments are spread out up and down the state of California. They are located in the regions of Southern and Northern California and in the Central Valley. The projects are in the markets of Los Angeles, Burbank, Fremont, Stockton and South Gate.
“California is one of the largest and most resilient economies in the world. It has the heavy port traffic and large population centers that will continue to drive demand for high quality logistics assets in the future. We are fortunate to have a strong presence and deep relationships with best-in-class developers, operating partners and capital markets professionals to help us add to our portfolios through both development and acquisition,” says Max Swango, a managing director with Invesco. He works out of the company’s home office in Dallas.
The projects that Invesco now has underway have been well received, and the ones that are currently under construction are 50 percent pre-leased, according to sources aware of these developments. Some examples of the activity by Invesco includes Avion Burbank totaling 994,000 square feet in Burbank, the 1.6 million square foot Pacific Commons in Fremont, Santana at LAX in Los Angeles totaling 143,000 square feet, the 447,420 square foot 5037 Patata in South Gate and 2222 South Sinclair Avenue in Stockton totaling 461,000 square feet.
Invesco has also been able to finance logistic assets it has either acquired or developed, according to industrial sources. The real estate manager has closed on seven loans totaling $382 million to finance either the acquisition or development of 3.7 million square feet of industrial space in California.
Invesco’s total industrial exposure for the entire company will soon surpass 14 million square feet in California. This type of real estate has been popular with tenants as the existing portfolio under the manager’s control is now 97 percent occupied.