LOS ANGELES—The Kanin Family Trust haspurchased the building housing a dog boarding facility calledPooch Hotel, a brand owned byPetco, from 1240 Palmetto LLC for$11.1 million, GlobeSt.com reports exclusively. The family trustpurchased the building as part of a 1031 exchange,and plans to use it as a leased investment.

The two-story, 18,000-square-foot property is located at 2250Barrington Ave. in West Los Angeles. “The West L.A.commercial market is high barrier to entry levelmarket with few investment opportunities,” Mollie SheaDietsch, a broker at Lee & AssociatesCommerce office who represented the buyer in the transaction, tellsGlobeSt.com. “The tenant Petco provided national credit and allowedthe buyer to diversify from residential investment to retail.”

According to Dietsch, all property types on the west side are indemand, largely due to “low interest rates, low cost of capital andinvestors looking to create yield on available cash.” For similarproperty types to this sale, she adds that caps rates have shrunkover the past 12 months from the mid 5% range to the mid 4%range.