Prologis has bussed itself into Downtown Los Angeles, paying $91 million to acquire the city’s Greyhound station.
The industrial real estate titan bought 361,707 square feet of land from Greyhound Lines Inc., CBRE announced Monday.
Sources close to the deal provided the price, which comes out to $252 per square foot.
The entirety of the land, which is the only Greyhound station in L.A. city limits, will be immediately leased back to the Dallas-headquartered transportation company, sources said.
But it’s not clear when the lease expires, and how Prologis might then repurpose the land.
In the press release, CBRE refers to the land as a “redevelopment site.” The brokerage says the lease back will give Prologis time to work on city approval for a mixed-use project. CBRE brokered the sale for Greyhound, while Kidder Matthews represented Prologis in the deal.
CBRE declined to comment beyond what was in the release. Messages left with Greyhound on Tuesday went unreturned.
Prologis responded to questions with a statement from Kim Snyder, the company’s West Region President, that Prologis is focusing on acquiring properties near “gateway” cities’ urban core.
The property could be repurposed for “single and multi-story industrial, transportation logistics development, or renovation of the existing improvements to create a low-coverage last-touch facility,” Snyder stated.
The land at 1526, 1614, and 1716 E. 7th Street sits less than a block away from the shuttered American Apparel factory, and it is two blocks from Skid Row, which is marked by homeless tent encampments.
The site is also near the Arts District, a well-traveled stretch of restaurants, retail, and galleries prior to the pandemic.
Prologis, headquartered in San Francisco, bills itself as the largest industrial landlord in the U.S. and the biggest lessor to Amazon. With the growth of e-commerce, the company has experienced more competition for land buys, with Blackstone and other asset management giants aggressively snapping up land.
This story was updated to include a statement from Prologis.