LA Meals Financial institution Purchases Industrial Constructing for $52M – Business Observer
After more than 10 years of searching, the Los Angeles Regional Food Bank found a new industrial site in the Industrial cityin the eastern part of LA County.
The nonprofit acquired a $ 52.1 million building in the small industrial community in the San Gabriel Valley. It was owned by Haralambos leasing company.
Newmark Knight Frank represented the food bank and announced the sale.
“We were looking for a building of this size and quality that the LA Food Bank had been able to acquire for over a decade,” said the vice chairman of NKF. John McMillansaid in a statement. “The one or two options that came up each year were quickly acquired by institutional investors. When we discovered that this building was available for purchase, we wasted no time taking the opportunity. “
Michael Flood, President and CEO of LA Regional Food Bank, added that the coronavirus pandemic has increased the urgency for the service to find a suitable facility “as our food distribution has doubled in recent months”.
The property is located in 2300 Pellissier Place, about half a mile south of the junction of Highways 60 and 605.
The 12 square mile industrial city is home to thousands of jobs and businesses, but fewer than 500 residents, and about 92 percent of the city is reserved for industrial use. The industrial market has a vacancy rate of 2.2 percent for the second quarter, with a supply rate of $ 0.83 per square foot, according to NKF’s report. Overall, LA County was that hottest industrial property market in the country, seeing 2 percent vacancy and $ 0.88 per square foot asking rent last quarter.
While negative absorption is expected this year, e-commerce and third-party logistics companies that drove leasing activities in the 2008 through early 2020 cycle are more important than ever today due to social distancing.
McMillan, Jeff Sanita, Danny Williams and Greg Mute represented the LA Regional Food Bank in the deal.