E-commerce has delivered another big industrial deal in Southern California.
Amid persistent demand for distribution space, Intercontinental Real Estate Corporation has acquired a 221,842-square-foot delivery facility in Los Angeles that is fully leased to Amazon (AMZN). The 13-acre property in the suburban Chatsworth neighborhood in the San Fernando Valley traded for $74 million. The seller was an entity managed by PGIM, property records show.
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The acquisition epitomizes Southern California’s industrial market with companies striving for faster delivery times, bolstering the need for such “last-mile” delivery facilities. The building at 20730 Prairie Street was previously a beverage packaging plant for the Ball Corporation until PGIM acquired the site for $37 million in 2019, redeveloped it, and leased it to Amazon.
The deal marks Boston-based Intercontinental’s first industrial acquisition in L.A. County.
“Only a small percentage of the industrial inventory in the San Fernando Valley are buildings over 100,000 square feet, and the majority of those are older product,” Jessica Levin, head of Intercontinental’s West Coast office, said in a statement.
Financing records show California Bank & Trust provided a $27.6 million loan on the property in May 2020.
The global pandemic forced consumers away from brick-and-mortar retail and toward online shopping, propelling the warehousing and logistics market in California. Amazon has led the charge, adding more shipping and sorting center sites. Recently, the e-commerce giant signed a lease to take over a 1 million-square-foot distribution center in Central California at a massive logistics park alongside tenants like Walmart and Target.
Many investors and developers are also getting more involved. Black Creek Group announced earlier this month that it’s adding two more projects with 1.7 million square feet of industrial space in Southern California’s Inland Empire region.
CBRE (CBRE)’s Darla Longo and Barbara Perrier represented the seller.
