Illinois Real Estate Investment Firm Buys LA Industrial Property for $21M
Illinois-based CenterPoint Properties has scooped up an industrial property in Los Angeles from the local Goldrich & Kest, for $21 million.
The 125,798-square-foot, one-story 13217 South Figueroa Street is a vacant single-tenant industrial building featuring 33 dock-high loading doors and a large private fenced yard area. CenterPoint is considering tacking on an approximately 12,000-square-foot two-story office, according to the release.
Robert Flores and John Privett of CBRE represented both the seller, a Culver City-based real estate investment firm, and the buyer, a national industrial real estate investment firm specializing in logistics-focused real estate, in the June 22 transaction.
“This building is going to be attractive to a broad mix of tenants because it’s strategically located with convenient access to the Ports of L.A. and Long Beach, LAX Airport, Downtown L.A. and the Westside” Privett said in prepared remarks. “Additionally, with almost 2 million people living within a seven-mile radius, it makes this an attractive location for e-commerce fulfillment and last-mile deliveries.”
The seller was originally seeking a new tenant for the space—the lease for Veritiv Corporation, which had occupied the building since 2014, expired on June 30—but, according to CBRE the firm started getting offers to purchase the property that “made sense for the seller to consider.”
Industrial real estate in infill Los Angeles, like where the South Figueroa Street property is, has seen unprecedented demand from both users and investors in the last few years. The market remains historically tight and demand continues to outpace supply. According to CBRE research, the vacancy rate in the South Bay industrial market at the end of the first quarter of 2018 was 0.8 percent and expected to be slightly lower when second-quarter numbers are finalized.