Palisade JV Pays $97M for LA Industrial Park

A joint venture between Palisade Group and Benefit Street Partners, a subsidiary of Franklin Templeton, has acquired the 544,705-square-foot Garfield Business Center in Commerce, Calif., for $97 million. The new ownership plans to implement a value-add strategy at the industrial property, according to a company statement.

Terreno Realty Corp. sold the five-building park, with Newmark leading the negotiations on its behalf. The company paid $52.4 million for the campus in 2012, CommercialEdge shows.

Located on 24 acres at 3300 Garfield Ave., the infill property is roughly 10 miles southeast of downtown Los Angeles. Interstate 5 and the BNSF Commerce station are less than 2 miles away, while the City of Angels’ port and airport operate within about 21 miles of the park.

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Built between 1951 and 1987, the campus was fully leased at closing to a dozen tenants active in various industries such as distribution, furniture and event rentals, groceries and medical services, among others.

One such company is Santa Fe Warehouse, whose 203,000-square-foot agreement is due to expire midway through 2026. The weighted average remaining lease term at the property clocked in at two years as of January, while the rents were 5 percent below market.

Garfield Business Center features clear heights ranging between 14 and 24 feet across its mix of bulk and shallow bay industrial facilities. What’s more, the park also comprises about 73,000 square feet of office space.

Newmark Co-Head Kevin Shannon and Vice Chairman John McMillan, together with Executive Managing Directors Andrew Briner, Bret Hardy, Jim Linn and Jeff Sanita, as well as Associate Director Aaron Banks and Senior Financial Analyst Luke Easton, led the negotiations on behalf of Terreno Realty Corp.

Palisade aims for lifestyle and gateway markets

Founded in 2023 by three former Blackstone executives, Palisade Group oversees $225 million in assets under management, comprising more than 1 million square feet. The company targets industrial and office investments across lifestyle and gateway markets.

Palisade closed another industrial deal in February with the $9.6 million purchase of a 51,420-square-foot asset in metro Portland, Ore., according to CommercialEdge information.

Greater Los Angeles’ industrial assets fetch top dollar

Metro Los Angeles’ industrial sale volume stood at $671 million during the first four months of 2025, according to the latest CommercialEdge report. Just Phoenix witnessed a higher investor appetite across Western markets, its figure settling at $709 million.

However, the City of Angels had the priciest industrial assets—trading on average for $300 per square foot—surpassing Orange County’s price of $292. In terms of rents, the rankings reversed, with Los Angeles’ asking rates of $15.2 per square foot outclassed by Orange County’s $16.7 figure.