An affiliate of KOAR Institutional Advisors paid $25.5 million for a portfolio of eight industrial buildings in Glendale that could offer redevelopment potential with multifamily housing.
The northern L.A. suburb area is suddenly catching on in the industrial space due to its proximity to rail transportation.
KOAR, through an entity called CPD Los Angeles LLC, bought the portfolio of buildings totaling 131,000 square feet from Pacific States Box & Basket Co. Inc., in what it describes as one of the largest deals to take place in the Tri-Cities market over the past two years.
The Tri-Cities market includes Burbank, Glendale and Pasadena.
Glendale has an industrial vacancy rate of below 1 percent, according to Lee & Associates. The buildings sold at roughly $198 square foot.
The portfolio consists of industrial buildings ranging in size from 3,000 to 59,000 square feet. The properties are located at 1225, 1275, 1295 and 1291 Los Angeles St.; 440, 444 Cypress St.; and 437, 449 Fernando Ct.
Listing brokers for the 5.21-acre Pacific States Box properties were Mike and Tony Maniscalchi with Systems Real Estate Management Inc. of Glendale. The buyer was represented by brokers Hunter Warner and Brett Warner with Lee & Associates.
In May, industrial developer Goodman Group paid Southern California supermarket chain Ralphs, a unit of Cincinnati-based Kroger Co., about $130 million for a sprawling manufacturing facility in Atwater Village. That property, developed over 30 years ago, spans about 37 acres on San Fernando Road near Colorado Street.
While demand for industrial properties in L.A. County remains high, industrial activity has been the strongest in the Inland Empire.
KOAR, led by Laurent Opman, Bruce Rothman and Jay Roth, has acquired, redeveloped and sold several office properties in the Los Angeles area in recent years. In Beverly Hills, KOAR redeveloped a 108,000 square foot office building at 100 North Crescent Dr., and a 65,000 square foot office building at 8447 Wilshire Blvd. It’s also done industrial repositionings in Santa Monica, Sylmar, Burbank and Riverside, according to its website.
In March, KOAR received approval for its 191-room Schrader Hotel project at 1600 Schrader Blvd. The project will include a restaurant and cafe, and would also rehab a 12-unit apartment building just north of where the hotel will be located.