The tight industrial market in Los Angeles led Brookfield Properties to its southern tier for a sizable buy in La Mirada.
Interstate 5 Firestone sold its 12-acre property in the city of 50,000 to Brookfield for somewhere between $55 million and $60 million, according to the Los Angeles Business Journal. The property is located at 14555 Alondra Boulevard.
Chuck Wilson of Colliers International Group represented both the buyer and the seller in the transaction. He said the deal came about after Interstate 5 Firestone sold its business, allowing the company to sell the land as well.
The LA Business Journal reports the 255,000-square-foot property was built in 1969 and is fully leased to one tenant. It was renovated five years ago and includes 11,000 square feet of office space and a large fenced yard.
Wilson told the Business Journal that the Mid-Counties industrial market –– an area that straddles the Los Angeles County-Orange County line and includes La Mirada -– has a vacancy rate of 1.5 percent, making it hard for developers to snag a deal these days.
The larger Los Angeles industrial market isn’t any more favorable to companies trying to make a buy in the sector. Average rent for industrial properties in Los Angeles rose to $1.14 per square foot in the third quarter. The vacancy rate in the broader market dropped from 1.7 percent to 1.4 percent between the second and third quarter, as tenants grabbed 3.3 million square feet.
It’s the latest industrial deal for Brookfield Asset Management, the parent company of Brookfield Properties, which purchased a pair of industrial properties in Carson in June 2020. The two properties totaled nearly 20 acres and cost a combined $64 million to buy from Western Tube & Conduit Corporation.
La Mirada has plenty of industrial potential. Two years ago, Clarion Partners paid $76.8 million for a 337,000-square-foot property from Bailard Inc., working out to $228 per square foot. At the time of the deal, Cushman & Wakefield hailed it as one of the top five industrial trades of the year.
[LABJ] — Holden Walter-Warner