The Magellan Group, a Southern California real estate investment and development firm and parent company of Magellan Storage, recently acquired three properties in Baldwin Park, Duarte and Riverside, Calif., which the company plans to develop into self-storage and industrial space.
In Duarte, Magellan plans to convert a building that once served as the site for constructing Tournament of Roses parade floats. The $10.6 million project at the intersection of Buena Vista Street and Duarte Road will comprise 79,668 square feet in 728 units. The project is expected to be completed in April 2015. The facility will be managed by Magellan Storage.
“We found the storage market fundamentals on both a macro- and micro-market level highly appealing,” said Kevin Staley, principal and co-founder of The Magellan Group. “We are pursuing repositioning and development opportunities in several infill Southern California markets, and this development aligns very well with our growth strategies.”
The Riverside property is a 14-acre site at 1869-2069 Massachusetts Ave., near the intersection of the 91 and 60 freeways. Purchased for $6.5 million, the site currently has a manufacturing building and yard area, both of which are leased. Magellan plans to redevelop the property with new industrial space as these leases expire during the next five years, company officials said in a press release.
“Several components made this an attractive investment, including the low basis, current cash yield and a strong location,” Staley said. The deal was brokered by Gary Sache and Pat Scruggs of real estate services firm CBRE.
Magellan also purchased a 4.8-acre property at 5115 Azusa Canyon in Baldwin Park for $4 million. The acquisition includes three buildings totaling 70,000 square feet that are currently on short-term leases. The company will redevelop the site once the leases expire, company officials said. Dennis Sandoval, executive vice president of DAUM Commercial Real Estate, brokered the transaction.
Founded in 1990, The Magellan Group has acquired and developed more than 4.5 million square feet of industrial, self-storage and aviation properties with a total value of more than $500 million. The company also operates six self-storage facilities in Southern California branded as Magellan Storage and Magellan Aviation, a provider of hangars and services at McClellan-Palomar Airport in Carlsbad, Calif.