LOS ANGELES—The Magellan Group has acquired a 26.8-acre plot of land for $20.5 million from a joint venture between Penwood Real Estate Investment Management and Wohl Property Group. The land is the largest land parcel entitled for industrial development in the Los Angeles area. The developer plans to build a 500,000-square-foot, five-building industrial facility on the site.

The Magellan Group will partner with Principal Real Estate Investors for the development, which will cost an estimated $55 million. Called Magellan Gateway, the project, located at 4127-4213 Temple City Blvd., is scheduled for completion in the second-half of 2015.

According to Kevin Staley, principal and co-founder of the Magellan Group, the acquisition is in line with the company's growth strategy in Southern California. The site location in the San Gabriel Valley is one of the key industrial markets due to its access to central Los Angeles and proximity to freeways. The market has a 3.3% vacancy rate, the lowest since 2008.

Cushman & Wakefield's executive director John Minervini, senior director Erik Larson, senior director Robin Dodson and associate director Chris Tolles represented both the buyer and the seller in the transaction. GlobeSt.com was unable to get a comment from the parties involved before the publication of this story.

Supply is limited for industrial properties with direct access to central Los Angeles. A similar development in the City of Bell is underway from Pacific Industrial. The multi-building, 500,000-square-foot project broke ground late last year and has already signed its first tenant, a fortune 50 company, for a portion of the space.