Pour one out for American Apparel.
San Francisco-based Prologis, the owner of the retailer’s former worldwide distribution center in La Mirada, has found a new tenant — Daiso California — to fill the space.
The deal comes just six months after a bankruptcy court approved the $88 million sale of embattled American Apparel’s intellectual property and manufacturing equipment to Gildan, a Canadian wholesale apparel company.
Daiso, a division of Japanese home goods retailer Daiso Industries, signed a six-year lease for the 220,000-square warehouse at 16400 Trojan Way. The deal is worth roughly $12 million, the Los Angeles Business Journal reported.
Colliers International’s Christopher Sheehan, Nicolas Vranka and Connor Reeves represented Prologis. Cushman & Wakefield’s Mike Foley, Chuck Berger, Ryan Bos and Dave Hess represented Daiso.
American Apparel’s lease was slated to expire in July, but Prologis cut it short after the brand filed for bankruptcy late last year.
The vacancy rate in the submarket, known as Mid-Counties, currently hovers below 1 percent.
“It’s a landlord’s market,” Sheehan told the Business Journal. “Tenants have to move quickly when they see a property they like, because it likely won’t be available for long, and they’ll be competing with other potential tenants.” [LABJ] — Cathaleen Chen