Industrial assets continue to see high demand in Southern California. In a more recent transaction, LBA Realty purchased a 240,000 square-foot industrial property in Santa Fe Springs. According to a recent Los Angeles third quarter industrial market report from Kidder Mathews, the property was sold to the Irvine-based real estate investment firm by International Paper for $95 million, or approximately $397.92 per square foot.
According to LBA Realty’s website, the property is located at 15005 Northam Street and sits on 10.13 acres. The one-story distribution facility was built in 1998 and continues to be solely occupied by its previous owner.
International Paper last purchased the property in 2000 for approximately $12 million, or $500 per square foot.
However, prices for industrial assets in Los Angeles have continued to go up. According to the report by Kidder Mathews, average sales prices for industrial assets in the Inland Empire have increased to nearly $250 per square foot. At the same time, rental rates continue to increase, finishing the third quarter at $1.14 per square foot, compared to $1.04 at the same time last year. Meanwhile, vacancy rates have decreased to 1.4 percent. At the same time in 2020, vacancy rates in Los Angeles’ industrial market were at 2.6 percent.
As industrial properties in the Greater Los Angeles region continue to be valuable, LBA Realty is looking to continue acquisitions in the area. The real estate investment firm just recently closed on a commingled fund valued at $1.95 billion. According to previous reports, 40 percent of the LBA Logistics Value Fund IX could be used for industrial assets in the Western U.S. These would include properties in the Inland Empire, Los Angeles, Orange County, San Diego, Seattle, Portland, Reno, Salt Lake City, Las Vegas, Phoenix and Denver.
Founded in 1991, LBA Logistics, the industrial arm of LBA Realty is a full service industrial real estate investment and management company with properties across the U.S. In Southern California alone, the company owns 19 industrial assets.