Kidder Mathews Adds 1.2 MSF to Management Portfolio

The 20 assets Kidder Mathews Asset Services is managing for Terreno Realty Corp. in Southern California. Image courtesy of Kidder Mathews

Kidder Mathews Asset Services has expanded its Southern California management portfolio with the addition of a 1.2 million-square-foot portfolio in the Greater Los Angeles area owned by industrial REIT Terreno Realty Corp.

The portfolio, which includes 20 industrial and improved land properties, marks Kidder Mathews’ first assignment with Terreno in Southern California, bringing the firm’s total square footage under management with Terreno to 2.8 million.

Kidder Mathews has been managing for Terreno, an industrial REIT with offices in San Francisco and Bellevue, Wash., in the Pacific Northwest since 2013. The firm currently has 1.6 million square feet of Terreno assets under assignment in Washington State. Senior Vice President Shelley Ryan, who has been Kidder Mathews’ relationship manager with Terreno since 2013, will continue in this role as the relationship grows.

READ ALSO: Foreign CRE Investors Weigh Opposing Forces

Erin French, Kidder Mathews COO of asset services, said in a prepared statement the West Coast commercial real estate services firm was excited to expand its long-term Pacific Northwest relationship with a West Coast player in a California market that both companies have in common.

REIT details

The portfolio that Kidder Mathews is managing has properties in downtown Los Angeles, as well as the Orange, South Bay, Hawthorne, Compton, Anaheim, Irvine, Mid-Counties and Inglewood submarkets.

Locations of the assets were not disclosed. However, Terreno is active in Southern California and the properties in the Kidder Mathews-managed portfolio represent less than half of the assets owned by the REIT in that region.

Terreno and its subsidiaries acquire, own and operate industrial real estate in six major U.S. coastal markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C. As of Sept. 30, 2022, Terreno owned 252 buildings aggregating approximately 15.4 million square feet and 46 improved land parcels consisting of nearly 160 acres across its U.S. markets. The REIT also had two properties under redevelopment that, upon completion, will total two improved land parcels with approximately 12.1 acres. As of Sept. 30, the operating portfolio was 98.4 percent leased to 575 tenants and the same-store portfolio of approximately 12.2 million square feet was 98.9 percent leased.

Market activity

Terreno has been active in the Greater Los Angeles market in recent months. The company’s deals included the acquisition of a 1.2-acre improved land parcel at 3091 East Coronado St. in Anaheim for approximately $7.3 million. The property is adjacent to the intersection of CA SR 91 (The Riverside Freeway) and CA SR 57 (The Orange Freeway). It was acquired vacant, but the REIT immediately executed a five-year lease with a Southern California investment group facilitating commissary services.

In August, Terreno expanded its footprint in the region with the acquisition of two properties totaling 4.3 acres in Compton and Hawthorne for a combined price of $38.7 million. The company is investing $15.8 million into the 1.3-acre Hawthorne asset at 4857 W. 147th St. to redevelop it into a 33,000-square-foot distribution facility. The property is located within half a mile of Interstate 405.

The Compton asset is located at 19500 S. Alameda St. in the Rancho Dominguez community. The 3-acre property has a low-rise warehouse and distribution building that is fully leased to two short-term tenants. It’s situated less than half a mile from Interstate 105 and is surrounded by several distribution and manufacturing companies.

In May, Terreno acquired two industrial assets in Los Angeles and Inglewood, Calif., for $27.2 million. The properties are located near each other and are about 2 miles northeast of Los Angeles International Airport and less than a mile east of Interstate 405. The Inglewood property is a warehouse located at 332 Hindry Ave. on less than an acre. The 19,000-square-foot building is 70 percent leased to a single tenant. The Los Angeles property is located at 8320 Isis Ave. and has about 40,000 square feet of warehouse space that is fully leased to four tenants.