Karney Snags $34M Industrial Refi in Southern California

One of Southern California’s most prominent industrial operators has refinanced a 178,454-square-foot facility in what’s referred to as the Gateway Cities.

Santa Monica-based Karney Properties secured $33.5 million in fixed-rate financing from Nationwide for the Class A single-tenant industrial building in Cerritos at the southeast border of Los Angeles County near Orange County. The building appears to be leased to global distribution firm Bunzl, which did not immediately respond to a request for comment.

The building at 15959 Piuma Avenue is adjacent to Interstate 605. It features 32-foot clear heights, dock-high loading doors and excess trailer storage, and it’s both one of the largest and one of the newest industrial assets in Cerritos.

The JLL Capital Markets team of Matt Stewart, Mark Wintner and Jacob Michael announced the financing and secured the loan on behalf of Karney Properties.

JLL’s first-quarter industrial data for Greater L.A. showed 13 move-ins versus five move-outs in spaces of 100,000 square feet or more, while contraction was concentrated in sub-50,000-square-foot spaces. Logistics and aerospace and defense tenants drove activity in the nearby South Bay.

The broader market saw year-to-date net absorption of negative 765,919 square feet, with total vacancy at 7.3 percent and average asking rent at $1.38 per month per square foot.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.