The tight industrial market in Los Angeles led Brookfield Properties to its southern level for a significant purchase in La Mirada.
Interstate 5 Firestone sold its 12-acre property in the city of 50,000 to Brookfield for somewhere between $ 55 million and $ 60 million, according to the Los Angeles Business Journal. This property is located at 14555 Alondra Boulevard.
Chuck Wilson of Colliers International Group represented both buyer and seller in the transaction. He said the deal came about after Interstate 5 Firestone sold its business, allowing the company to sell the land as well.
The LA Business Journal reports that the 255,000-square-foot property was built in 1969 and is fully let to one tenant. It was renovated five years ago and includes 11,000 square feet of office space and a large fenced yard.
Wilson told the Business Journal that the industrial market in the Mid-Counties – an area that crosses the Los Angeles County-Orange County line and includes La Mirada – has a vacancy rate of 1.5 percent, making it difficult for developers to get a agreement on these. days.
The larger industrial market in Los Angeles is no longer favorable for companies trying to make a purchase in the sector. The average rent for industrial properties in Los Angeles rose to $ 1.14 per person. square feet in the third quarter. The vacancy rate in the broader market fell from 1.7 percent to 1.4 percent between the second and third quarters as tenants snatched 3.3 million square feet.
It’s the latest industrial deal for Brookfield Asset Management, the parent company of Brookfield Properties, which bought a pair of industrial properties in Carson in June 2020. The two properties totaled nearly 20 acres and cost a total of $ 64 million to buy from Western Tube & Conduit Company.
La Mirada has a lot of industrial potential. Two years ago, Clarion Partners paid $ 76.8 million for a 337,000-square-foot property from Bailard Inc., equivalent to $ 228 per square foot. square feet. At the time of the deal, Cushman & Wakefield hailed it as one of the five best industrial trades of the year.
[LABJ] – Holden Walter-Warner