CIRE Equity Acquires Industrial Campus From Link Logistics for $116M

Why It Matters

The deal signals deepening institutional confidence in Los Angeles’ industrial submarkets, where vacancy rates are at historic lows, reinforcing the area’s status as a national logistics hub.

Key Takeaways

• CIRE Equity spent $116M on 307k‑sq‑ft campus.
• PGIM provided $136.5M acquisition financing.
• Campus fully leased to PRG Van Nuys and Biagi Bros.
• San Fernando Valley vacancy rate sits at 4.1%.
• Deal underscores growing institutional interest in LA industrial.

Pulse Analysis

Los Angeles’ industrial landscape has become a magnet for capital, driven by a scarcity of supply and a surge in e‑commerce demand. The San Fernando Valley, anchored by the Van Nuys Airport corridor, now records a sub‑4% vacancy rate, positioning it among the nation’s most coveted logistics zones. Proximity to major freeways and a growing network of distribution hubs makes the area attractive for tenants seeking rapid market access, while investors view it as a defensive asset amid broader economic volatility.

CIRE Equity’s $116 million acquisition illustrates a strategic play to lock in high‑quality, income‑producing assets in this environment. By securing $136.5 million from PGIM Real Estate, the firm leveraged institutional financing to amplify its exposure without over‑leveraging its balance sheet. The fully‑leased status—housing production equipment provider PRG Van Nuys, warehousing specialist Biagi Bros, and a school‑bus lot—delivers immediate cash flow, reducing risk and enhancing the portfolio’s resilience against market fluctuations.

The transaction also reflects a broader trend of large‑scale deals in the region, echoing recent financing activity such as Pendulum Property Partners’ $113 million loan for The Mix and Longpoint Realty Partners’ $85 million purchase near the airport. As developers and REITs continue to target the valley’s limited inventory, competition for prime parcels is likely to intensify, driving up cap rates and prompting further institutional participation. Stakeholders should monitor vacancy trends and financing terms, as they will shape the next wave of industrial investment in Southern California.

Deal Summary

San Diego‑based private equity firm CIRE Equity closed on a $116 million acquisition of a 19‑acre, 307,000‑sq‑ft industrial campus in Los Angeles’ Van Nuys neighborhood, buying two fully‑leased buildings from Link Logistics, Blackstone’s industrial arm. The transaction was financed with $136.5 million in acquisition financing from PGIM Real Estate.