LAX Industrial Market Gains Much-Needed Product

LOS ANGELES—A joint venture between Panattoni Development Co. and MetLife Real Estate Investors has purchased a land site in Inglewood for the development of a class-A industrial property. The site is entitled for a 149,040-square-foot industrial facility, which will be one of the only available class-A sites in the very tight LAX market. The sales price was not disclosed.

"We are very excited about this because the site is two miles away from LAX, and there is a lot of freight forwarding, air freight and LAX food-service-type users," Mike Condon, VP at JLL, tells GlobeSt.com. "Additionally, in terms of class-A industrial product in the LAX submarket, we are going to be the only available site over the next few months. We are really going to be the only option in the market." Condon represented the seller in the transaction.

Located at 687 N. Eucalyptus Avenue in Inglewood, the property is not at a main-and-main location and near some residential, but is in close proximity to the airport. As a result of the location, however, the marketing team brought the opportunity to a select group of industrial developers. "The site was a bit more complex than a traditional land deal, given that it is located within some residential, so we didn't want to take it through a traditional marketing campaign," says Condon. "The marketing process was limited to a select few of the top few industrial buyers that are familiar with this market, probably only four or five groups of the most experienced guys. The guys that we took it to would give us the top pricing for it."

Construction will begin in early 2016, and the property will be ready for occupancy in 4Q16. It will be designed for an airfreight user or a manufacturer, and it will feature 23 dock high doors, 30 trailer parking spaces, a corporate headquarters image, creative office interiors, 32-foot warehouse ceiling clearance and an ESFR sprinkler system. 

The nearby Compton submarket is also getting a new class-A industrial facility to accommodate the supply. The 1-million-square-foot property will have access to both LAX and the ports.