South Bay Submarket Offers Logistics Tenants Infrastructure Advantage in LA
Byline Bank's Commercial Real Estate Group has completed a $20.25 million term loan with Stockbridge Capital Group to refinance a two-property industrial outdoor storage portfolio in Wilmington, Calif., a location that continues to distinguish itself as one of the most strategically valuable logistics hubs in the country and offers an infrastructure advantage in Los Angeles.
The 13-acre portfolio, fully leased and comprising sites at 501 Quay Avenue and 1540–1550 Eubank Avenue, is positioned in the heart of the South Bay submarket, where proximity to infrastructure is not merely an advantage but a defining feature of long-term industrial performance.
Situated less than six miles from the Ports of Los Angeles and Long Beach, the properties benefit from immediate access to the nation's busiest port complex, which handles roughly 30% to 40% of all U.S. containerized imports.
Offering An Infrastructure Advantage
This location places tenants at the doorstep of a global gateway, enabling rapid movement of goods between maritime, trucking and rail networks. The sites are also positioned near Interstates 110, 710 and 405, three of Southern California's most heavily utilized freight corridors.
This connectivity allows operators to reach distribution centers throughout the Los Angeles Basin, the Inland Empire and regional consumer markets with exceptional efficiency, reinforcing the value of industrial outdoor storage in dense infill environments.
"The South Bay submarket in general benefits from strategic infrastructure that other LA submarkets cannot compete with, including close access to the Ports of L.A. and Long Beach, which drives historically high occupancy rates for IOS product and limited availability," Sarah Hunter, senior vice president, senior commercial real estate officer of Byline Bank, told GlobeSt.com.
"This is further evidenced by the tenants being long-time occupiers of the assets. Byline targets IOS loans in deeply infill, extremely high-barrier-to-entry markets like this one."
An Area Where Demand Outpaces Supply
The South Bay submarket itself remains the largest industrial zone in Greater Los Angeles, with approximately 199 million square feet of inventory and a long-standing reputation for supply constraints that support rent stability and strong absorption.
CBRE Research reported that South Bay recorded nearly 2.95 million square feet of leasing activity in the fourth quarter of 2025, representing roughly a quarter of all industrial transactions across the region during that period.
Early indicators for 2026 suggest that demand for IOS assets in port-adjacent locations continues to outpace supply, driven by elevated container volumes, ongoing e-commerce expansion and the need for trailer parking, laydown yards and fleet storage that traditional warehouses cannot accommodate.
Source: GlobeSt/ALM