LOS ANGELES-Dallas-based Invesco has acquired an 843,156-sf portfolio of industrial properties in four Los Angeles County cities from Prudential Insurance Co. of America, according to CB Richard Ellis, which brokered the transaction. The portfolio comprises infill buildings in four projects in the cities Carson, Compton and Torrance and is 99% leased.
Terms of the deal were undisclosed, and recent market reports suggest a broad range of prices for industrial space, depending on size, location and other factors. Generally, reports peg the overall average prices for industrial space in the county at more than $100 per sf. One indication of the rising demand and prices is in a CBRE report saying that the land values for industrial infill sites in the South Bay have nearly doubled during the last two year to prices ranging from $29 to $36 per sf.
The CBRE team says that the low vacancy rate at the properties, which are all situated close to the ports of Los Angeles and Long Beach, underscores the continuing demand for space in the industrial sector in Los Angeles and across Southern California. Vacancy rates in the fourth quarter of 2006 declined to 1.95% in the South Bay market and 1.29% overall in Los Angeles County.
Vice chairman Darla Longo of CBRE says that bidding on the properties was "very competitive," thanks to the strong demand in general for leased industrial investments in Southern California. In addition, the specific location of this portfolio, near the ports, added to investor interest.
The CBRE team that brokered the deal included Longo, executive vice president Barbara Emmons, vice chairman Kevin Shannon and first vice presidents Scott Schumacher and Mike Moore. The portfolio consists of 13 buildings on almost 42 acres.
The four properties that traded are the 104,000-sf El Presidio at 2888 El Presidio, the 215,316-sf Walnut Center at 301 W. Walnut St., the 386,763-sf L.A. Business Center at 1330-1800 W. Walnut Parkway and 1401-1999 W. Walnut St., and the 137,077-sf Pacific Gateway Center at 19216-19426 S. Normandie Ave.
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