RANCHO DOMINGUEZ, CA-First Industrial Realty Trust has acquired a vacant 356,000-sf warehouse at 3015 Ana St. and plans to convert it to a modern logistics facility, according to the Klabin Co. The Chicago-based REIT acquired the property from Dominguez Industrial Center LLC for an undisclosed price, but sources tell GlobeSt.com that the deal came in at just under $30 million.
First Industrial was represented by a team from Klabin that included Frank Schulz, Todd Taugner and David Bales, all in Klabin's Torrance office. The Klabin brokers also landed the exclusive listing for the new project, which is situated on 14.5 acres.
Schulz describes First Industrial's plan to convert the empty warehouse into modern logistics space as the latest example of the mounting demand for modern facilities to serve the expanding needs of the ports of Los Angeles and Long Beach. The REIT will soon begin a $4-million reconfiguration of the newly acquired property, involving the demolition of 150,000 sf of the structure and redevelopment of the balance.
The resulting building will comprise 213,000 sf and feature 55 dock-high loading positions, 20-foot minimum interior clearance, and 5.7 acres of additional land for container storage, plus two Union Pacific rail spurs. First Industrial expects to complete the project in the fourth quarter of this year.
Schulz cites the "growing demand for trans-loading and container storage near the ports." He adds that the First Industrial project "reflects an ongoing trend of conversion of functionally obsolete warehouse and manufacturing space to logistics use." Land values drive the conversions, with properties becoming more valuable for logistics and distribution uses as demand continues to grow, he explains.
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