Commerce Sale, Lease Top $30M

CITY OF COMMERCE, CA-This city has tallied two of the year’s biggest industrial sales and leases in the Central Los Angeles submarket as two clothing companies have purchased a 327,000-sf building and US Can Corp. has signed a lease for nearly 500,000 sf in transactions brokered by Cushman & Wakefield. The combined value of the sale and the lease exceeds $30 million. The building that was sold was a 327,496-sf facility at 4940 Triggs St. that for years had been the West Coast hub for logistics company Gilbert West, notes Cushman & Wakefield’s Dwight Hotchkiss, who along with Steve Marcussen represented the buyers. The buyers, who will both occupy the building, are two apparel companies doing business as Triggs Real Estate Holdings LLC and H E & E Triggs LLC. Terms of the sale were not disclosed, but industry sources estimate the property sold for approximately $17 million to $19 million. The seller was the Magellan Group, which owns and manages a $300-million portfolio of industrial and self-storage assets in Southern California. Magellan was represented by the Cushman & Wakefield team of John McMillan, Jeff Sanita and David Hasbrouck. The building, which fronts the Santa Ana Freeway near Atlantic Boulevard, had been vacant since September when Gilbert West was acquired by shipping giant P+O Nedlloyd, which then relocated to Chino. Hotchkiss says demand is high for such buildings because the supply of industrial buildings for sale in the Central Los Angeles submarket is “virtually non-existent.” In addition, he says, new construction has been hampered in the Los Angeles Basin due to the lack of available land. The building that Illinois-based US Can leased is at 5650 Grace Place and is owned by Magellan, which was represented in the lease by Hasbrouck, McMillan, Sanita and Matt Eggleston. The 10-year, $15-million lease was a renewal for US Can, which has been in the building for the past 30 years. The company was represented by Eric Danielson and David Kim of Studley. US Can is a supplier of metal and plastic containers and uses the 499,041-sf facility to manufacture its aerosol, paint, plastic and general line products for distribution in the Western US.