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The Real Deal Los Angeles

PGIM partners to buy sprawling Chatsworth plant amid industrial surge

Xebec Realty was also in on the $37M purchase of the 300K sf property
By Dennis Lynch |
Research by Haru Coryne
January 10, 2019 09:00AM

Ball Corporation CEO John Hayes, Xebec CEO Randy Kendrick and the Chatsworth plant (Credit: Google Maps)

Updated, January 10, 11:10 a.m.: PGIM and Xebec Realty Partners acquired a sprawling Chatsworth manufacturing plant, as the Los Angeles industrial market continues its hot streak.

Ball Corporation sold the facility for $37 million.

Ball operated the property at 20730 Prairie Street as a beverage can manufacturing plant until shutting down operations in the third quarter of 2018. The building is about 300,000 square feet and the entire property stretches across 11 acres.

Ball sold the space through a subsidiary, Rexam Beverage Can Company.

A recent report tapped the L.A. industrial market as the strongest in the country, and predicted it would continue to outpace the rest of the nation.

Xebec is a Dallas-based firm that specializes in industrial and logistics real estate. PGIM is the asset management wing of Prudential Financial. Xebec is also planning a 233,800-square-foot warehouse at a property it purchased in Santa Fe Springs in September.

In April, Xebec offloaded a DMV-occupied building in El Monte. PGIM’s most recent major deal in Los Angeles was a $124.5 million sale of a three-building office campus in Huntington Beach in November.

While the Ball name is best known for a line of mason glass jars, Ball Corporation hasn’t produced the jars that bear its name since 1996, when it spun off the business. The home-canning business was later bought by the makers of Coleman outdoor products and another of home goods brands. Ball Corporation has two main divisions, one producing metal packaging like the aluminum cans produced at the Chatsworth facility. The other is an aerospace division that builds satellites and military equipment.