Goodman Group snags 1M sf industrial lease at Santa Fe Springs
Industrial real estate remains hot, with nationwide vacancy at all-time low
A logistics company has signed a nearly 1-million-square-foot lease for a Sante Fe Springs distribution center.
Damco signed a 10-year lease for all of Goodman Group’s 989,809-square-foot Santa Fe Springs industrial park, according to CoStar. The property, called Goodman Gateway, has six buildings on 75 acres, including 18 acres for truck parking.
The American wing of the Australian developer and manager, Goodman North America, picked up the property and one other in El Monte in 2016 for $240 million from an Idaho-based Albertsons Companies, the grocery company. That deal penciled out to around $171 per square foot.
The Santa Fe Springs site was a former oil refinery that required significant remediation by Goodman. Prologis was also interested in the property, according to CoStar.
Its a half-mile from Interstate 5 and three miles to Interstate 605, giving Damco quick access to key routes around the county, including to the ports of Los Angeles and Long Beach and Los Angeles International Airport
Industrial real estate is hot as ever. Vacancy across the country last year was at an all-time low and 2017 was the first year that rent growth outpaced other sectors.
With the market so tight, owners in L.A. are finding offers from prospective tenants, and investors are quickly finding buyers for properties on the market. Chicago-based Bridge Development Partners unloaded a 512,000-square-foot Class A property in Torrance earlier this month for $103 million.
In The City of Industry, a San Francisco-based food distributor plans to cut out the middle man and develop a new warehouse and office facility on a 5.4-acre site it bought for $20.5 million. [CoStar] — Dennis Lynch