LOS ANGELES—CT Realty has purchased a 325,800-square-foot industrial building for $21.3 million from W.P. Carey. The property is located at 16425 E. Gale Ave. in the City of Industry, CA, a prime Los Angeles infill market.
“Due to the lack of functional industrial product in the area, as well as increasingly robust demand from the owner-use community, the real estate fundamentals for this acquisition are extremely strong,” says Carter Ewing, managing partner of CT Realty. “In addition, land constraints in this part of Los Angeles County make new development extremely challenging and expensive, creating substantial upside opportunity for the investment.” CT Realty declined to provide further comment on the transaction for this story.
Set on 14.7 acres near the 60, 605 and 10 freeways, the property is 100% leased to two tenants. The larger tenant, women’s clothing manufacturer Swatfame Inc., leases 233,200 square feet of space, and is locked in through June 2020. The second unnamed tenant has a lease for 92,595 square feet of space for the next five years. Cushman & Wakefield‘s Erik Larson, Chris Tolles and Robin Dodson of the downtown Los Angeles office will handle leasing efforts for the property. This Cushman team along with John Minervini represented CT Realty in the acquisition transaction as well.
In addition to the 100% occupancy with attractive lease rolls, the condition of the property itself also made this an attractive investment opportunity. The property has 24-foot clear heights, 18 dock-high doors and 11 grade level doors. Additionally, the property has 368 onsite parking spaces.
Infill markets are becoming increasingly attractive locations for industrial users, which are often looking for ways to reduce shipping duration. REDA Bascom Ventures, for example, recently broke ground on two industrial projects totaling 500,000 square feet. The properties are located in the City of Commerce and in Fontana, CA, an Inland Empire market that is also very popular for developers.