Rockpoint Selling City of Industry Warehouse for $96M

Boston-based real estate private equity firm Rockpoint is selling the planned site of a 213,500-square-foot warehouse complex in the City of Industry for $96.1 million, more than double what it paid for the asset less than two years ago, The Real Deal has learned.

The property, located at 17969 Railroad Street, sits on a 9.8-acre site adjacent to the 60 Freeway. Rockpoint is looking to cash out before finishing the project. Construction at the property has not commenced, and the property is being marketed to users for sale or lease as a build to suit, a source said.

Rockpoint paid $44 million for the asset in July of 2023, property records show. At that time, the site was occupied by the previous owner, custom electric motor manufacturer Reuland Electric. After the deal closed, Reuland reportedly signed a one-year lease with Rockpoint to wind down its operations at the site.

Shortly after closing on the purchase, Rockpoint announced its redevelopment plans for the site. This involved demolishing the existing 75,000-square-foot structure and building a spec warehouse with EV charging stations, parking spaces for cars and trailers and a two-story office building. The project was initially estimated for completion sometime in 2025. At the time, the property was expected to be marketed for a single tenant.

Rockpoint’s Southern California portfolio includes the massive Park Newport residential community in Newport Beach. That asset, which Rockpoint acquired last year, sits on a 52-acre site and contains a total of 1,306 units. The firm also owns Ponte Vista, the planned site of a 212-home rental subdivision project in San Pedro.

Large industrial deals have recently closed in Los Angeles County. In early December, Rexford paid $137.2 million for a fully leased 300,000-square-foot warehouse in Compton. A month later, Pleaser USA acquired a Walnut industrial complex for $100 million.

Correction: This story has been edited to reflect that construction has not commenced at 17969 Railroad Street and that Rockpoint has numerous properties in Southern California.