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A joint venture is buying a 126,015-square-foot industrial site in Los Angeles, further demonstrating investors’ persistent appetite for warehousing space in Southern California.
Harbor Associates and Evergen Equity announced Monday they agreed to pay $55 million for four adjacent properties ranging in size from 17,000 square feet to 45,000 square feet on 7.5 acres in the South Bay city of Gardena. The site is next to the I-405/I-110 interchange and roughly 12 miles north of the Port of Los Angeles.
The deal is equal to approximately $436 per square foot of developed space, or $7.3 million per acre of industrial land. L.A.’s industrial property sales averaged $314 per square foot through the first 10 months of this year, according to a report by CommercialEdge, making it the most expensive market in the country for buyers.
The site at 690-760 West 190th Street is within the 34 million-square-foot Gardena/Harbor industrial submarket, which boasts a vacancy rate of less than 1 percent, according to the buyers. Evergen CEO Troy Marcus said the asset “will be one of the crown jewels in our logistics portfolio.”
Rich McEvoy, principal at Harbor Associates, said the owners are contemplating several options for the property, including a Class A industrial outdoor storage facility for trucking and container uses.
The deal adds to L.A.’s $3.55 billion in industrial asset sales this year, which is second only to the Inland Empire in terms of transaction volume, per CommercialEdge.
“This submarket is incredibly dense and is one of the few in the area that allows for trucking and shipping container uses,” added Harbor’s Paul Miszkowicz in a statement. “This has ‘super-charged’ the demand as (third-party logistics) and logistics companies compete for a diminished supply of truck yards.”
The 190th Street asset is Harbor’s third industrial acquisition this year, in which it has surpassed over $120 million in acquisitions, and adds to its 640,000-square-foot industrial portfolio in Southern California.
Eric Cox, Barbara Perrier and Darla Longo of CBRE (CBRE) advised the seller on the transaction.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
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