Goodman Group is gobbling up the former Farmer John meatpacking plant in one of the largest industrial deals in Los Angeles this year.
The global development firm agreed to pay more than $206 million for the property near Downtown L.A., sources familiar with the transaction told Commercial Observer. The processing, manufacturing and warehousing facilities span 350,512 square feet, according to PropertyShark, though it will likely be redeveloped into a larger industrial park.
SEE ALSO: Japanese Developer Mori Takes 11% Stake in One Vanderbilt at an Over $4B Valuation
Colliers (CIGI) announced the sale but declined to share the sales price. The brokerage also emphasized that the site — which has one of Southern California’s largest food-processing plants — is “primed for a generational redevelopment.”
“Due to the scarcity of developable land in the Central L.A. submarket, industrial land accumulation of this size has not been seen in over 10 years,” Colliers Vice Chairman Michael Kendall said in a statement. “This transaction creates a generational opportunity to build one of the most significant industrial facilities in the world.”
The 29-acre property is about five miles south of Downtown L.A. at 3049, 3095 and 3163 East Vernon Avenue in the small industrial city of Vernon. Smithfield Foods, the seller, announced earlier this year that the L.A. Farmer John plant would close, and the company laid off close to 2,000 employees, according to reports. The Farmer John brand had gained popularity in L.A., and made the official Dodger Dog until 2021.
L.A. has for years been one of the nation’s top industrial real estate markets. Greater L.A. this year through May 31 recorded the highest average sales price in the nation at $417 per square foot, and the second-highest sales volume in the nation (behind the Inland Empire).
Colliers’ Kendall, Gian Bruno and Kenny Patricia led the disposition effort on behalf of Smithfield Foods and the buyer, Goodman North America. Colliers’ Jimmy Martin, Tom Condon, Alex Blecksmith and Matt Erickson also advised on the deal and have been retained for the future leasing of the property on behalf of Goodman.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
