LBA Realty, an Irvine-based investment firm, recently scooped up a 220,000-square-foot industrial property in Vernon, according to multiple sources.
The structure at 4440 E. 26th Street, which contains 30,000 square feet of creative office space, houses the U.S. corporate headquarters of 7 For All Mankind, a luxury denim brand. Its parent company, Delta Galil Industries, was the seller.
LBA paid about $29 million, or $132 per square foot, according to Real Capital Analytics. The firm could not be reached for comment to confirm the price, but a Vernon industrial broker with knowledge of the deal said it went for more than $28.6 million, or $130 per square foot.
Paul Sablock of JLL represented both the buyer and the seller, but declined to comment.
According to another Vernon-based industrial broker, LBA paid slightly above the submarket average for properties of this size.Typically, the broker told TRD, industrial properties go for about $120 per square foot in the region.
Delta Galil Industries, an Israeli manufacturer that owns a range of retail brands, acquired 7 For All Mankind — along with Splendid and Ella Moss — from VF Corporation last June.
The denim label will likely relocate into the offices of Ella Moss and Splendid on Alameda Street, according statements made by Delta CEO Isaac Dabah when his company bought the brands.
Earlier this year, Delta filed paperwork with the state to lay off 88 employees from the three brands. VF Corp. decided to sell the companies after seeing their revenues decline, California Apparel News reported.
The retail market at large is hardly rainbows and butterflies. Nearby in Vernon, Designer Max Azria, for example, defaulted on $34.6 million in loans attached to a trio of warehouses. One of his lower-tier brands, BCBG, filed for bankruptcy in March and announced it will close 120 stores.