TA Realty doubles investment with $29M industrial sale in Chatsworth

The renovated industrial property in Chatsworth
The renovated industrial property in Chatsworth

TA Realty has sold a recently renovated industrial property in Chatsworth for $28.5 million, doubling its investment in the property in just two years, The Real Deal has learned.

An LLC named “Exeter 18356 DE” purchased the 146,000-square-foot site, title documents show.

TA Realty, a privately-held real estate investment firm based in Newport Beach, acquired the property at 9140 Lurline Avenue in 2016 for $13.75 million, property records show. It then invested “substantial capital” to renovate the property, originally built in 1974, according to a company statement published last week.

John DeGrinis, Patrick DuRoss and Jeff Abraham of Colliers International represented TA Realty. David Young and Chad Gahr of NAI Capital represented the buyer.

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At nearly $200 per square foot, the deal was the “highest per-square-foot price paid yet for a building this size,” DeGrinis said in a statement.

The industrial real estate market remains one of the hottest in all of Los Angeles County, and nationwide. An uptick in demand from a variety of industries, specifically manufacturing and e-commerce, has caused availability for warehouse space to fall to 7.2 percent in the second quarter, its lowest level since 2000, according to CBRE.

That’s also led to a hike in prices. In the South Bay — an industrial hub near the Ports of Los Angeles and Long Beach and the Los Angeles International Airport — asking prices have shot up the past year from an average of $130 per square foot to more than $215 per square foot. Many properties are also seeing multiple offers, despite the condition of the building.