Sierra Capital, a San Francisco-based asset manager and sponsor of seven real estate investment trusts, has earmarked $50 million to buy light-industrial properties in the Los Angeles and San Diego areas.
Southland industrial properties are expected to maintain high occupancy rates and appreciate between 5% and 10% a year, outperforming most other types of real estate, Sierra Capital President Robert R. Walker Jr. said.
"The Los Angeles-San Diego corridor will continue its role as a regional crossroads for goods and services for the West, and industrial properties will be needed to service that market," Walker said.
Walker said Sierra Capital is negotiating for several Southern California properties, but did not disclose specifics. The company already owns several Southland properties, including North Irvine Business Park, Buena Park Commerce Center and the Scripps Ranch Business Park in San Diego.