An industrial parcel that could present a prospect for outdoor storage or industrial development has hit the market in the Lincoln Heights neighborhood of downtown Los Angeles. The asset totals 3.2 acres of land and is located on 405 N. San Fernando Road in an area predominantly dedicated to industrial activities. Pricing guidance for the asset is undisclosed.
The marketing of the property is handled by the Cushman & Wakefield team of Mike Condon Jr., Erica Finck, Jacob Kovner and Kylie Rawn. The property is currently owned by an entity affiliated with Fifteen Group, public records show.
The marketing materials show that the property currently consists of a low-rise industrial/warehouse campus of 10 buildings with a total area of 91,857 square feet, all of which will be made available vacant upon sale and could provide further flexibility for prospective developers.
The industrial asset is located at the convergence of the California State Route 110 and US Interstate Highway 5, providing it access to the major thoroughfares traversing greater Los Angeles. It is also in close proximity to key transportation hubs such as the Hollywood Burbank Airport, Los Angeles International Airport and the Ports of Los Angeles and Long Beach.
Cushman’s marketing flier also shows that the property is located within the Cornfield Arroyo Seco Specific Plan Area (“CASP”), where current zoning regulations permit industrial outdoor storage as a by-right use. Although the CASP is undergoing revisions, with the latest version recommended for approval by the City Planning Commission in December 2023, industrial/warehouse development remains permissible.
When considering the Los Angeles industrial market as a whole, Cushman & Wakefield reported that by the close of 2023, there were 54 properties undergoing construction totaling eight million square feet. The Cushman Q4 2023 Marketbeat report also states that most of the construction will be completed by the end of 2024. The largest development of 2023 wrapped up in the fourth quarter: the one million square foot Grand Crossing – Building 1 in the San Gabriel Valley.
Cushman also reports that although this market has recently seen increased vacancy rates, port operations at the Ports of Los Angeles and Long Beach started to rebound in the latter half of 2023 following a challenging first half of the year. If import volumes keep increasing, Cushman believes that this is likely to drive up the demand for industrial space in Los Angeles.
