By Lilly Riddle
A Long Beach industrial property has recently hit the market, presenting a unique investment opportunity for those seeking to capitalize on the region’s industrial sector.
The two-building property — located at 2180 Temple Ave. and 2880 Hill St. — is being offered for $10,699,000, or roughly $222 per square foot, combined. According to a marketing brochure from Institutional Property Advisors, this offering marks the first time the property has been available for sale in 26 years, adding to its potential appeal. The property is an asset for both investors seeking to capitalize on the region’s industrial market and owner-users looking for a strategic location to expand their business. It is currently owned by an entity based on Long Beach.
According to the brochure, the property consists of a 48,191-square-foot masonry-constructed building fully occupied by four tenants. The largest tenant, Clarendon Specialty Fasteners — a subsidiary of the $4.84 billion market cap company Diploma PLC — occupies 41 percent of the property and contributes nearly 50 percent of its revenue, with the anchor tenant’s lease extending until 2031. Additionally, the tenants have an average occupancy of more than 13 years.
The property’s current net operating income of $525,060 is projected to increase to $744,612 by year four, indicating a value-add opportunity for a prospective investor. This potential for growth is primarily due to the property’s below-market in-place triple-net leases, which can be fully realized by September 2026, according to the marketing document.
Adding to the property’s appeal is its location on top of Signal Hill, which offers both accessibility and visibility. The property has direct connections to major transportation arteries — including the 405 and 710 Freeways — and is situated in close proximity to the Long Beach Municipal Airport, the Port of Los Angeles and the Port of Long Beach, which together handle 35 percent of the nation’s container traffic.
For potential owner-users, the property offers the flexibility to occupy up to 57 percent of the gross leasable area by August 2025, which may also qualify them for Small Business Administration financing. This adaptability enables businesses or owner/users to establish or expand their presence in the Long Beach industrial hub and tailor the space to their specific needs and potentially reduce leasing costs.
Mark DeGiorgio and Andrew DeFendis of Institutional Property Advisors are leading the marketing efforts for this property on behalf of the owner.
