Nuveen pays $151 million for L.A. cold storage and distribution site – Trade Observer
Nuvean made a big bet on the industrial real estate market in Southern California.
The investment firm paid $151.2 million for a fully leased Class A distribution project with 337,125 square feet in southeast Los Angeles County, property records show. This is almost double the amount that the seller, Clarion Partnerspaid to acquire the property two years ago.
Cushman and Wakefield represented the seller and advertised the sale, but did not disclose the sale price.
The site is leased to three tenants and includes 87,139 square feet of new refrigerated space. It is on over 14 acres to 14001-14007 and 14041-14051 Avenue Rosecrans in the small town of La Mirada, where the industrial vacancy rate is 0.6%. It was built in 1997 north of Interstate 5 and State Route 91, and is 15 miles from the Ports of Los Angeles and Long Beach, as well as Los Angeles International Airport.
“The property is well positioned in the Mid-Counties industrial submarket, one of the strongest in the country,” Cushman & Wakefield said. Rick Ellison said in a statement. “The low vacancy rate has resulted in rental rate growth in the area, creating an exceptional go-to-market opportunity and an ideal long-term investment strategy. The property also offers a rental option with expirations short-term leases combined with a range of suite sizes and configurations appealing to a wide variety of potential occupants.
Ellison worked with colleagues at Cushman & Wakefield Jeff Chiate, jeffrey cole, Mike Adey, Brad Brandenburg and Matt Leupold on the agreement on behalf of Clarion.
Gregory Cornfield can be reached at [email protected].