The industrial market of Greater Los Angeles has endured recent pressures of vacant space and increased sublease availability. However, one property that may attract renewed investor interest in the area is a fully leased, 73,622 square foot industrial warehouse for sale at 320 31st St. on approximately 2.4 acres of land.
The marketing efforts for the building are led by Voit Real Estate Services’ Senior Vice Presidents David Fults and Brian McLoughlin. While pricing guidance for the property is undisclosed, property records show that the building last traded hands in 2021 for $22.8 million, or about $309 per square foot, when it was acquired by an entity affiliated with Fortress Investment Group.
The Class B industrial facility was originally constructed in 1997, but has been refurbished as recently as 2013. The property amenities include approximately 25,500 square feet of flexible office space, as well as four dock high positions, two pit levelers and 24 feet in ceiling height. The warehouse also has electrical facilities of 800 amps in total.
The warehouse additionally offers two fenced yards and close to 80 parking spaces. The single-story building is currently fully occupied by Signal Brands Inc.
The property is located just off the US Interstate Highway 110 and across the street from the University of Southern California campus and the Jefferson/USC public transit stop. It is also within easy reach of US Interstate Highway 10 as well as US Interstate Highway 5 and US Highway 101. The Staples Center, the LA Convention Center and Downtown LA are all within a short distance of the warehouse as well. Finally, the industrial asset is easily accessible from Los Angeles International Airport and the Port of Long Beach.
According to a third quarter industrial market report from CBRE, the greater Los Angeles industrial market has seen a noticeable increase in the total vacancy rate, rising to 1.8 percent quarter-over-quarter and resulting in an additional 3.1 million square feet of vacant space. During the same period, the availability rate also increased, moving from 3.8 to 4.3 percent.
However, CBRE expects the stabilization of interest rates will potentially provide increased clarity for the industrial real estate capital markets. The fundamentals within the industrial sector remain relatively robust, positioning the sector well to withstand a minor downturn in early 2024.
