Elion Partners Expands West Coast Last-Mile Portfolio

The company’s $83 million acquisition comprises logistics assets in the San Diego, Bay Area and Seattle metros. Separately, Elion also acquired a last-mile property in Florida.
2340 Cousteau Court in Vista, Calif. Image via Google Street View

Elion Partners, of Miami, has acquired four last-mile industrial distribution assets on the West Coast, aggregating 425,000 square feet, for a total of $83 million. Elion reportedly intends to continue an investment strategy focused on first-, middle- and last-mile logistics properties, targeting core urban logistics hubs near large population centers in infill coastal markets.

READ ALSO: Supply Chain Resiliency to Boost Logistics Demand

The individual properties are:

  • 2340 Cousteau Court, Vista, Calif., in the San Diego metro; 134,299 square feet
  • 6955 Consolidated Way in San Diego; 82,781 square feet
  • 33401 Central Ave., Union City, Calif., in the Bay Area/Alameda County; 94,976 square feet
  • 6700 Hardeson Road, Everett, Wash., in the Seattle metro; 112,924 square feet

The sellers were not disclosed, but it appears that there were multiple companies, possibly separate sellers for each asset.

The addition of these assets provides the company with immediate operational cost-saving efficiencies, Shlomo Khoudari, managing partner at Elion Partners, said in prepared remarks.  

Elion expanded to the West Coast in April with the addition of James Lambert, who joined the firm from Amazon Logistics, as senior managing director of industrial investments.  

Accelerated e-commerce adaptation combined with the need for supply chain resiliency and diversification have been the primary demand drivers for the asset class, according to Lambert. As retailers and manufacturers increase their level of safety inventory and look to diversify their supply chains, strategically located distribution centers will be vital to their success, Lambert added in prepared remarks.

Just a bit of recovery

Separately, Elion announced the purchase of a 93,636-square-foot last-mile logistics asset in Florida, a former Bennett Auto Supply distribution center, at 3141 S.W. 10th St. in Pompano Beach, for $12 million.

The San Diego industrial real estate market bounced back in the third quarter with positive absorption of 876,800 square feet, versus negative absorption of 901,000 square feet in the second quarter, according to a recent report from Cushman & Wakefield.

Nonetheless, rents remain down compared with 2019. Countywide, the average asking rent for industrial space was $1.13 per month per square foot, triple-net, versus $1.18 per month 12 months earlier, also according to Cushman & Wakefield.