Fully Leased Industrial Site Trades for $61M in LA
BentallGreenOak has acquired a large, fully leased industrial site in Los Angeles County for $61 million
Real estate management firm BentallGreenOak has acquired a large, fully leased industrial site in Los Angeles County for $61 million, or $265 per square foot.
The 230,250-square-foot property, at 300 North Baldwin Park Boulevard in the City of Industry, was sold by an entity linked to The Jamcar Companies, property records show. The Alhambra-based firm, via its restaurant supply unit Jamcar Foodservice Distribution, occupies the entire 230,250-square-foot space on a lease that expires in 2030.
The five-year-old property, east of Downtown L.A., features 6 million cubic feet of multi-temperature storage space. Investors are growing more interested in old-storage facilities, pushing cap rates for class A facilities closer to those of traditional warehouses, according to CBRE. L.A. is among the five markets with the lowest available space for cold storage at 4 percent.
Cameron Merrill with CBRE represented the seller.
CBRE’s final industrial report for 2019 showed that the Greater L.A. market has limited supply and strong demand. The region had the lowest vacancy across the nation in the last quarter of the year at 1.4 percent. This attracted more than $1.3 billion in capital in the final quarter with the average price per square foot rising from $171 to $210 year over year.
The 12-square-mile City of Industry is in the San Gabriel Valley region of L.A. County where about 92 percent of the city is zoned for industrial use. The San Gabriel Valley posted a 1.5 percent vacancy rate and average asking lease rates are about $0.86 per square foot, less than the $0.95 per square foot for all of L.A. County. Rental rates are expected to climb 2.2 percent in L.A. and Ventura Counties through 2020, according to CBRE research.