Interest from institutional investors for last-mile industrial properties and infill assets close to urban centers continues throughout Southern California. In a recent transaction that closed in early September, Blackstone, one of the largest financial institutions in the world, through its industrial investment vehicle, Link Logistics, purchased an 82,200 square-foot property located at 1719 Chapin Road in Montebello for $29.3 million, or roughly $356 per square foot, according to public documents. The seller was Macey Investment Corp.
The deal was brokered by JLL on the Link Logistics side, and one of the people representing the buyer was Mark Vanis, managing director of the firm’s Los Angeles office. Vanis sees the strong industry dynamics continuing to buoy the industrial investment sales market in Southern California, and the demand for this type of space will remain elevated.
“With a strong Los Angeles industrial market, we are seeing well-positioned investors like Link Logistics look to grow their portfolio,” said Vanis in a statement. “We continue to see rising rents, decreasing vacancy and very little development, causing strong investor demand with no slowdown in sight.”
The Los Angeles industrial market has seen a number of recent transactions, according to our own reporting. On the investment sale side, Flux Investments paid $50.1 million, or just under $380 per square foot, in September for a 132,000-square-foot distribution center in Rancho Dominguez. This submarket is seeing a vacancy of 1.3 percent with year-over-year rent growth of 15.4, according to JLL. In another recent deal, BLT Enterprises paid roughly $404 per square foot, or $4.2 million, for a 10,400 square-foot warehouse building on 0.85 acres located at 7748 Industry Ave. in Pico Rivera.
On the development side, Omni Logistics recently announced that it was opening a new 251,600-square-foot warehouse and cross-dock facility in Los Angeles. “Los Angeles and Long Beach are both major economic drivers for the logistics industry and provide Omni Logistics the opportunity to expand our reach to customers on a local, regional, and national and international level. Our continued investment in Los Angeles will create additional flexibility to meet our customers’ ever-increasing needs,” said Omni Logistics’ Chief Executive Officer, JJ Schickel at the time of the announcement.
