The iconic development and investment company has spent $110 million in the sector over the past nine months, adding 700,000 square feet to its West Coast portfolio.
This includes an expansion into two new markets: Salt Lake City and Beaverton, Ore.
The company, founded by the late Donald Koll and currently led by local real estate veterans Gerald Yahr, Scott Lanni and Scott Meserve, launched a new industrial business line about three years ago, and recently ramped up its holdings in the sector as a result of burgeoning demand prompted by the pandemic.
“Our entry into the sector was a bit ahead of the strong value increases that industrial has seen in recent years, which has only been fueled by the pandemic,” Lanni said.
Recent Deals
Recent deals include the acquisition of an eight-building portfolio in Sacramento and Salt Lake City bought through a joint venture with Los Angeles investment manager PCCP.
Koll also acquired a warehouse in Beaverton that houses a manufacturing hub for Nike, which in the city.
Lanni, who previously led commercial acquisitions for Irvine Co., notes that Koll will continue to hinge future growth on the industrial sector.
“A lot of our institutional partners we work with are looking to deploy capital in this sector,” Lanni said, adding that the area is becoming increasingly competitive.
“We’re working hard to scout value-add opportunities” including in Orange County, with several deals in the pipeline.
Portfolio
The company’s OC portfolio totals 4.5 million square feet, primarily consisting of low-rise office properties, which has historically comprised the bulk of Koll’s holdings.
Nearly two-thirds of that portfolio has been added in the past seven years, when Lanni joined forces with Yahr and Meserve to head the day-to-day operations of the company.
“We’ve essentially been rebuilding the Koll Co. since the global financial crisis,” Lanni said.
The company will ultimately ramp up investments in the office sector, but for now, it’s in a wait-and-see mode as offices continue to recover from the pandemic.
“We’re proud that we were able to remain an active investor during the coronavirus, and we plan on using that momentum to continue making deals,” Lanni said.
