Craig Halverson, vice president of acquisitions for Carson-basedWatson Land, notes that the acquisition includes eight acres ofextra land and that the property will play "an integral role in theexpansion of our company." UPS Supply Chain Solutions employs 232workers at the building, which was constructed in 1972. The SupplyChain Solutions business unit provides transportation and freightservices, logistics and distribution, consulting, and internationaltrade services.

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The sale was brokered by Jay Borzi and Steve Silk of EastdilSecured, along with David Prior and Todd Taugner of The Klabin Co.Price was not disclosed.

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[IMGCAP(2)]Carson and other South Bay markets remain on the topof the list for industrial users wanting to be near the ports ofLos Angeles and Long Beach, but some users are now opting torelocate for lower rates, according to Colliers International. Theincrease in prices in the South Bay has industrial users relocatingtheir operations to neighboring regions, to areas such as Commerce,where the average asking lease rate for industrial space is 58cents per square foot and sales prices average $101 per squarefoot, compared with 68 cents for leasing and $117 per sf to buy,according to Keith Graves, associate at Colliers International'sSouth Bay office in Torrance.

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In addition to offering cost efficiencies, cities such asCommerce are centralized within Los Angeles and businesses canmaintain close proximity to major highways and the ports, Gravessays. The most recent example of this trend is Horizon Tire Inc., aChina-based company that relocated from Compton to Commerce.Horizon, an international importer and wholesaler of tires, leaseda 51,184-square-foot industrial building to house its USdistribution operations. Located at 5556 Grace Place in Commerce,the property is Horizon's second in the US, with its first inHouston. The tire company is moving out of approximately 50,000square feet of space within an 80,000-square-foot industrialbuilding in Compton that it has been subleasing.

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Graves along with Alex Blecksmith, an associate with ColliersInternational's Commerce office, represented Horizon in the lease.The building owner, the Magellan Group Inc., was represented byCushman & Wakefield.

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In another example of industrial users moving to Central L.A.from South Bay, BW Enterprises, a UK-based furniture company,acquired a 30,000-square-foot industrial building at 6371 RandolphSt. in Commerce for $3.15 million, or $105 per square foot.

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