Developer sells 80% of portfolio
Real estate developer Storm Properties Inc. of Torrance said Wednesday that it had sold more than 1.4 million square feet of industrial and office buildings to Thompson National Properties for about $110 million.
The sale to the Irvine property investment and management firm is one of the larger commercial real estate transactions in Southern California this year.
The deal represents 80% of Storm’s real estate portfolio and consists of buildings in various stages of construction, primarily in Los Angeles County. One of the biggest pieces is an industrial park being built in Torrance.
With the majority of its portfolio weighted with industrial properties, Storm said the deal would help it diversify. The company plans to use the cash to add office, retail and multifamily projects to the mix.
“Storm Properties received a premium value despite the general real estate market slowdown,” said David Simard, the company’s vice president. “This goes to show that there are profitable deals to be made in a challenging market.”
All projects planned or under construction would be completed by Storm Properties, according to the terms of the deal. Final transfer is expected in February.
Storm Properties is a division of 70-year-old Storm Industries Inc. Among its family of companies is home builder Storm Western Development.