Staley Point Closes 123K-SF Industrial Lease in LA County
Landlord acquired the site for $39 million in 2021
By Greg Cornfield October 17, 2023 6:05 pm
reprints
Third-party logistics firm LAX Freight Delivery is relocating to a bigger facility after it signed a lease for an entire 123,138-square-foot building, further demonstrating demand for industrial space in the Los Angeles area.
JLL (JLL) announced Tuesday the lease for the building on 7 acres at 2187 Garfield Avenue in Commerce, Calif., about six miles east of Downtown L.A. Property records show a joint venture of Staley Point Capital and Bain Capital Real Estate acquired the site for $38.5 million in September 2021, and secured $30.5 million in financing for the property from L.A.-based Mesa West Capital in November of that year.
Terms of the lease were not disclosed.
“Despite the current economic climate, we see continued interest for industrial space in key infill markets like Los Angeles, with buildings offering unique attributes for the supply chain logistics industry,” JLL’s Jon Reno said in a statement. “LAX Freight Delivery was attracted to this recently renovated property because of its low coverage and cross-dock loading configuration.”
For the sixth consecutive quarter, the L.A industrial market saw negative absorption, driven by logistics and consumer products users, according to JLL’s third-quarter report. In spaces over 100,000 square feet, net absorption was practically flat, but move-outs nearly tripled move-ins in spaces under 100,000 square feet.
Central L.A., which includes Commerce, continues to slump given its predominance of small to midsize infill sites. Since the second quarter, average asking rates in Central L.A. decreased by 9 percent, the largest drop market-wide, per JLL. However, manufacturing users and specialty third-party logistics businesses like LAX Freight Delivery have made a resurgence as active tenants in the market.
Also in Commerce, Dedeaux Properties recently acquired the 882,000-square-foot property owned by 99 Cents Only Stores in a short-term sale-leaseback deal a few miles west of Staley Point’s property.
JLL’s Reno, Mark Vanis, Trevor Gale and Sage Segal represented L.A.-based Staley Point Capital. Marc DiGennaro of Lee & Associates represented LAX Freight Delivery.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
