IDI Logistics, an Atlanta-based developer of distribution, manufacturing and warehouse facilities, sold a 290,920-square-foot industrial building it owned in Buena Park to Stockbridge Capital Group LLC for $99.5 million, the biggest industrial deal of the second quarter.
The property sold for $342 per square foot, according to a grant deed for the transaction. Escrow closed in June, according to CoStar. IDI Logistics bought the property as part of a $1.7 billion, 140-property portfolio in January 2019.
The building at 6600 Valley View, Buena Park, was leased to Orora Packaging Solutions at the time of the sale. Orora Packaging, based in Melbourne, Australia, primarily manufactures aluminum can and glass packaging for the beverage industry.
San Francisco-based Stockbridge Capital has $35.7 billion of assets under management. Its portfolio includes 93.4 million square feet of commercial space and 17,500 residential units.
The Buena Park warehouse marks Stockbridge’s rare presence in Orange County.
The real estate investment management firm’s other local property is Edinger Plaza, a Huntington Beach retail center it bought in 2019 for $65.5 million.
Stockbridge Capital, founded in 2003, has offices in Atlanta, Chicago, Dallas, Denver and Phoenix.
A partnership between Stockbridge Capital and Dedeaux Properties sold 1 million square feet of industrial outdoor storage properties in the Inland Empire in early 2024.
Stockbridge Capital also partnered with Lennar Corp. and Wilson Meany to create Treasure Island Community Development, a massive redevelopment project in San Francisco County.
The partnership is developing 8,000 residential units, restaurants, shops, 300 acres of open space and 22 miles of trails on Treasure Island, a small land mass located at the midpoint of the San Francisco-Oakland Bay Bridge in San Francisco County.
The development anticipates adding 18,000 residents to the island.
Last month, JLL helped broker a deal between Stockbridge Capital and a joint venture between Becknell Industrial and Goldman Sachs Alternatives near Savannah, Georgia. Stockbridge Capital bought a 1-million-square-foot warehouse that was fully leased to National Distribution Centers LLC.
Largest Transaction of the Quarter
Stockbridge Capital’s acquisition of 6600 Valley View was the priciest industrial deal of the quarter in Orange County, according to Cushman & Wakefield’s most recent market report.
Other major industrial deals for the second quarter of the year were Buchanan Street Partners’ $63 million purchase of Spectrum Centre Business Park and Jiaherb buying 2929 E. Imperial Hwy. for $53 million.
Lake Forest Reliability Project paid nearly $51 million for 20 Icon, a 102,299-square-foot industrial building in Foothill Ranch.
Industrial sales activity, per Cushman & Wakefield, slowed down last quarter to $332 million in volume, down about 49% quarter-over-quarter and 2.4% year-over-year.
“The slowdown… reflects investor caution amid persistent economic uncertainty,” according to Cushman & Wakefield’s industrial market report.
Cushman & Wakefield’s report added the average sales price for an industrial building was $338 per square foot, a 9% drop, compared to one year ago.
Nearly one in three buyers of industrial properties last quarter were private entities. Cross-border investors made up 29.4% of the buyer pool, followed by institutional organizations at 26%, per Cushman & Wakefield.
“The mix reflects a diverse buyer pool, though the pullback in overall volume suggests many remain in a wait-and-see posture as market dynamics evolve,” according to Cushman & Wakefield’s report.