Rare Asset Trades in Foreign Trading Zone

Greenlaw Partners has acquired an industrial warehouse in north Los Angeles in a foreign trading zone. The asset traded hands before the coronavirus-inflected economic disruption and was highly sought after among investors. However, the property could be among the last to trade in the near-term as the pandemic has caused a market pause. The deal is an example of the demand for industrial properties prior to the outbreak.

“The lower tariffs that a foreign-trading zone location offers manufacturers was an added incentive that made the asset highly competitive amongst buyers,” Dennis Marciniak, VP of DAUM Commercial Real Estate Services, tells GlobeSt.com. “While the building ultimately sold to an investor with a distribution tenant in place, this in-demand location helped us to negotiate a strong price for our client.” Marciniak represented the seller in the deal along with VP Larry McEwan.

The 131,000-square-foot property is located on 8.7 acres and includes ample warehouse space, 15,000 square feet of office, a conference room, and an overflow storage area. The building features 28-foot clear height, four dock-high loading doors, and 100% refrigerated air. The asset received strong interest, no surprise since activity was healthy in the early part of the year. “Industrial activity throughout the first couple months of the year was very strong, as anticipated,” says Marciniak. “Naturally, the COVID-19 pandemic has caused a slowdown due to economic uncertainty.”