LOS ANGELES, CA--(Marketwired - Oct 17, 2016) - The Magellan Group, a leading Southern California real estate investment and development firm, broke ground last year on Magellan Gateway in El Monte, Calif., following an eight-year drought of industrial development in the infill Los Angeles market. Demand was high, and the supply of new distribution space non-existent.
Magellan Gateway is now complete, and the five-building, 501,270-square-foot industrial project is quickly fulfilling the need for new distribution space in the San Gabriel Valley.
"The high level of buyer interest in Magellan Gateway affirms the quality of the project we were able to deliver against the backdrop of a supply-constrained market," said Kevin Staley, co-founder of The Magellan Group. "The entire development team is to be credited for the success of Magellan Gateway, and we're grateful to the City of El Monte for sharing in our vision to bring such an outstanding project to the market," added Staley.
Magellan Gateway, which received occupancy certificates in August, has already sold three buildings to The Gill Corporation, Jans Investment and Management, and Dream Home Temple City Boulevard, LLC. The Magellan Group was represented in all three transactions by Cushman & Wakefield's Erik Larson, Robin Dodson, John Minervini and Chris Tolles.
Magellan Gateway was developed with the flexibility to accommodate multiple buyers or tenants in each building, though strong demand from single-building users is the predominant sales driver. Buildings feature 26- to 30-foot clear heights, dock-high and grade-level loading, concrete driveways and truck courts, T5 warehouse lighting, flexible column spacing, finished ground floor office spaces and ample mezzanine space.
Designed by HPA Architecture and constructed by Millie & Severson, the project is in application for LEED Sustainable Facility certification. Principal Real Estate Investors provided joint venture equity for the development; construction financing was provided by U.S. Bank.
Magellan Gateway is a Class A, institutional quality industrial development, and the delivery of the project was timely given the limited amount of supply in the area. Industrial vacancy rates in the San Gabriel Valley dipped to 1.6% in the first quarter of 2016, a nine-year low according to Cushman & Wakefield.
Magellan has sold nearly $250 million in industrial and self-storage properties over the past 18 months, realizing significant gains from its acquisition, development and repositioning strategies. This activity included the $140 million sale of two self-storage portfolios to Sovran Self Storage earlier this year.
About The Magellan Group
The Magellan Group was founded in 1990 by Kevin Staley and Martin Slusser.
Please visit www.magellangrp.com for more information.