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Liberty Properties Fortifies Southern California Portfolio

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Liberty Property Trust (LPT - Free Report) has been witnessing favorable demand for is properties in Southern California. The company recently acquired an industrial property at 1543 N. Alder Street in Rialto, in a bid to strengthen its foothold in the region and fully leased it within a week of the transaction.

The industrial property, I-120 Logistics VI, has been designed to meet LEED certification specifications. The company acquired the building at shell completion and planned to rent it out to tenants with urgent requirements.  

This property has been leased to CTDI that now occupies 426,302 square feet of space. Property features include 36-foot clear height, 53 dock-high, a truck court spanning 185 square feet of space, parking space for 100 cars, as well as two grade level loading doors. 

With this recent acquisition, Liberty currently owns four buildings at or near the intersection of Alder and Baseline Streets. Moreover, all the properties are located in the boundaries of Rialto’s Renaissance Specific Plan — a master-planned multi-use area. This reflects the company’s confidence in the area. Furthermore, such densification efforts will fortify its presence in the area and enable Liberty Property to command higher rents. 

Other Activities in the Region

In August, the company leased in full a recently-completed industrial development project at 9724 Alabama Street in Redlands. The 156,263-square-foot building was let out to Global Logistics Connections. It is located at the corner of San Bernardino Avenue and Alabama Street. In addition, the property enjoys convenient accessibility to the I-10, I-210 and I-215 Freeways. 

Also, Liberty Property is set to break ground on two properties this fall, with completion anticipated in second-quarter 2019. Specifically, I-10 Valley Logistics Center, spanning 401,106 square feet of space, will offer spacious industrial capacity with 3,556 square feet of office area. The industrial building is located at the intersection of Valley Boulevard and Spruce Avenue in Rialto.

The second building spanning 94,911 square feet sits on a five-acre parcel. It is situated in Cucamonga Avenue at Acacia Street in Ontario. The building will be given clear heights and wide column spacing. Moreover, the property will offer two levels of office space spanning 4,021 square feet of area.

In Conclusion

Liberty Property’s Southern California portfolio of 18 building encompasses nearly 4.3 million square feet of industrial space in Carson, Fontana, Gardena, Garden Grove, Hawthorne, Moreno Valley, Ontario, Redlands, Rialto, San Fernando and Simi Valley.

It aims to maintain 100% occupancy at its portfolio and has significantly increased its market share across the region.  

Notably, Liberty Property’s emphasis in the Southern California industrial market bodes well amid positive fundamentals in the real estate market. However, many new buildings are slated to be completed and made available in the market, in the near term, leading to lesser scope for growth.

Liberty Property currently carries a Zacks Rank #3 (Hold). In the past year, the company’s shares have gained 4.9%, while the industry has declined 0.7%.


 

Key Picks

Better-ranked stocks from the REIT space include VICI Properties (VICI - Free Report) , Park Hotels and Resorts, Inc. (PK - Free Report) and PS Business Parks, Inc. (PSB - Free Report) . All three stocks carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

VICI Properties’ Zacks Consensus Estimate for 2018 FFO per share has been revised upward by a cent over the past 30 days. Its shares have gained 7.4% in the past six months.

Park Hotels and Resorts’ FFO per share estimates for 2018 witnessed 1.3% upward revision in 30 days’ time. Its shares have appreciated 26.7% over the past six months.

PS Business Parks’ FFO per share estimates for the current year moved up marginally in the past 30 days to $6.39. The stock has rallied 17.6% in six months’ time.

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