CBRE announced the sale of three industrial buildings in Los Angeles for $11.3 million to a Los Angeles-based lifestyle brand and maker of home and travel products, which will occupy one of the three properties.
CBRE’s Kevin Foley, Mark Shaffer, Anthony DeLorenzo, Gary Stache and Doug Mack represented the private seller, Keno Properties LLC, in the transaction.
The three buildings, totaling 53,064-square-foot, include the 27,436-square-foot 1714 S. Maple Avenue, the 17,141-square-foot 1729 Wall Street and the 8,487-square-foot 437 E. Washington Boulevard. They are located just off the I-10 Freeway in the Fashion District in Downtown Los Angeles, home to many clothing manufacturers and emerging media tenants.
“This was a unique investment opportunity for the buyer to acquire prime space for both occupancy and leasing income,” Foley said. “These warehouse buildings enjoy great accessibility to exciting new Downtown amenities and major freeways.
“The buyer has been a tenant at a nearby building, where they lacked expansion space. This acquisition will allow them to control their occupancy costs moving forward and have the option to expand into the remaining buildings in the future.”
Increasing asking rates, all-time low vacancies, and heightened competition for industrial space have been the theme for the greater Los Angeles industrial market in Q3 2021, according to CBRE research. Overall vacancy hit a record low of 1% marketwide as tenants sought to expand their industrial footprint in the densely populated region, CBRE research shows.
“Given the incredibly tight industrial market in our region, this deal drew a considerable amount of attention from investors and occupiers, which ultimately led to this sale,” Foley said.