112,538 SQFT Industrial Building in Gardena on the Market for $30MM

Gardena, Ball Family Farms, Fallas Discount Store, Los Angeles, Stan Johnson Company, Nissin Foods, Marukai Corporation U.S.A., En Pointe Technologies, Boeing, Lockheed Martin, DirecTV, SpaceX, Tesla, South Bay, Port of Los Angeles, Los Angeles International Airport

By Catherine Sweeney

A 112,538 square-foot industrial building in Gardena is currently on the market for $30 million, after it was last sold in 2018. According to an offering memorandum obtained by The Registry, the property is fully occupied by California-based cannabis company Ball Family Farms and Fallas Discount Store, which currently owns the building. 

The one-story building, located at 15001 S. Figueroa Street, sits on approximately 3.42 acres and contains three loading docks. Additionally, the property was built in 1954, and last received renovations in 1964.

Currently, Fallas Discount store operates a warehouse out of 72,538 square feet of the property, while an additional 40,000 square feet is home to a Ball Family Farms cannabis growing facility. According to the listing by Stan Johnson Company, the cannabis company has recently signed a new 10-year lease at the property with a 3 percent annual increase. Fallas Discount Stores also agreed to a five-year sale-leaseback upon completion of the sale. 

According to the offering memorandum, the tenants pose as strong points for potential investors, as cannabis sales exceeded $18 billion in the U.S. in 2020. 

“The market is expected to grow rapidly as there are only 33 states with legalized medical marijuana and 11 states with legalized recreational marijuana, which accounted for 55 million cannabis customers…legal cannabis sales in the United States are projected to exceed $34 billion in 2025 and $80 billion by 2030,” the memorandum states. 

Additionally, the property benefits from the nearby demographics, according to the listing. The  area is densely populated, with more than 810,000 residents within five miles of the property. 

Located in the South Bay region of Los Angeles, the area is also home to major companies as well, including Nissin Foods, Marukai Corporation U.S.A., En Pointe Technologies, Boeing, Lockheed Martin, DirecTV, SpaceX, Tesla and more. 

As an industrial property, the building also benefits from its close proximity to the Los Angeles International Airport. Additionally, the building sits adjacent to Interstate 110, connecting Gardena with downtown Los Angeles. The location is also just 14 miles from the Port of Los Angeles. 

“The Port of Los Angeles is one of the world’s busiest seaports and leading gateway for international trade in North America and has ranked as the number one container port in the United States each year since 2000,” the offering memorandum states.