Fremont Breaks Ground on Industrial Project

Fremont Development Co. broke ground this week on what is believed to be the largest speculative industrial project built in Los Angeles County in more than a decade. The Torrance-based developer is constructing three warehouse buildings totaling 1.25 million square feet on the site of a former Lockheed plant near the interchange of the Harbor and San Diego freeways. The park, called Harbor Gateway Commerce Center, is expected to open next summer, said Michael Krotz of Fremont. No tenants have been signed as yet, but the project’s construction underscores the growing confidence in the long-depressed South Bay industrial market as both Los Angeles International Airport and the ports of Los Angeles and Long Beach expand. Fremont and its partners, Colorado Public Employees Retirement Fund and RREEF Funds, purchased the 67.5-acre site from Lockheed Martin Corp. in October for $23 million. The cost of the entire development is estimated at $75 million. Industrial vacancy in the South Bay area has now dropped to 7.5%, industry observers say.