Newmark has arranged the sale of a 255,878-square-foot building in the City of Industry, an industrial suburb of Los Angeles in the San Gabriel Valley region, for $52.1 million to Los Angeles Regional Food Bank.
Newmark’s Vice Chairman John McMillan, Senior Managing Director Jeff Sanita, Managing Director Danny Williams and Associate Director Greg Stumm represented the buyer and owner/user, a 501 (c)3 nonprofit organization. The seller, Haralambos Leasing Company, was represented by an outside firm.
The property, located at 2300 Pellissier Place, features a large fenced yard, ample parking, freeway frontage and a 24,836-square-foot office mezzanine. The property is ideally located just a half mile south of the intersection of the 60 and 605 Freeways and is nestled right in the heart of LA County.
“The competition to acquire large industrial assets in Los Angeles is extremely high,” said McMillan. “We had been looking for a building of this size and quality for the LA Food Bank to acquire for over a decade – the one to two options that popped up every year would quickly get acquired by institutional investors. When we discovered this building could be purchased, we wasted no time in seizing the opportunity.”
“The COVID-19 pandemic has increased the urgency for the Food Bank to find a suitable facility as our food distribution has doubled over the past several months,” stated Michael Flood, President & CEO of the Los Angeles Regional Food Bank. “We have been working with John McMillan and his team to find the right opportunity, and we are ecstatic that we have acquired this property.”
McMillan added, “Despite the pandemic, LA County’s direct industrial vacancy rate is still hovering in the low 2 percent range, and activity remains very steady. We were really fortunate to discover this option for the Food Bank. They are such an amazing organization and do so much good work for the people of LA County that we felt duty-bound to do everything we could to make this happen.”
While negative absorption is anticipated this year, LA is perhaps the most resilient industrial market in the country, according to Newmark Research’s 2Q20 LA industrial report. E-commerce (and the 3PLs supporting them), which drove leasing activity in the 2008 to early 2020 cycle, is more important now than it has ever been, due to social distancing. This will lead to more final-mile centers; many of which will have a cold storage component.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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