Liberty Property Trust (LPT) disclosed that it has fully leased warehouse property – 1135 Aviation Place – to Ricon Corporation through a long-term deal. The tenant relocated to this San Fernando-based building last month.
1135 Aviation Place, which offers 65,347 square feet of industrial space, is situated within a three acres land parcel. Liberty Property purchased this facility last year, as a part of the portfolio acquisition that marked its entry into the South California industrial market. Both the parties in the abovementioned leasing deal were represented by personnel of CBRE Group, Inc. (CBG).
We believe that this transaction is a strategic fit as it will augment Liberty Property’s tenant base and pave the way for rental revenue escalations. Also, the industrial property market in South California is exhibiting an upward trend. Particularly, amid a larger customer base and rise in e-Commerce application and supply chain consolidation, there is an increasing demand for high-quality logistics facilities. And Liberty Property is aiming at capitalizing on this trend.
As a matter of fact, South California is among the nation’s largest industrial market and one of the target markets for this real estate investment trust (:REIT). Consequently, in April, Liberty Property acquired a 522,772 square foot warehouse facility for $33.6 million in Moreno Valley. Currently, the company owns 1.1 million square feet of industrial space in this market. We expect these initiatives to strengthen the company’s industrial portfolio in upscale locations, going forward.
Liberty Property currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like The GEO Group, Inc. (GEO) and Terreno Realty Corp. (TRNO). Both stocks carry a Zacks Rank #1 (Strong Buy).