Fruit juice maker Prodalim Group has leased a 60,000 square-foot food processing plant in South Gate, its first foray on the West Coast.
A U.S. subsidiary of the Israel-based firm signed a 10-year lease valued at $17 million for the 2.8-acre industrial food processing property at 12128 and 12228 S. Center St.
Dennis Sandoval, a principal and executive vice president of DAUM Commercial Real Estate Services, represented Prodalim Group USA.
“Prodalim was seeking to expand its operations in the U.S. and engaged us exclusively to identify its first West Coast facility, based on our deep experience in the Los Angeles Basin, one of the most competitive industrial markets in the country,” said Sandoval, in a statement.
Industrial properties have been especially hard to come by in Los Angeles County, with a historically low vacancy rate of 1.5 percent in the final quarter of 2021.
From Ventura to Long Beach to Orange County and out to the Inland Empire, the Southern California market has seen demand for industrial space skyrocket, thanks to its proximity to the ports of Los Angeles and Long Beach — two of the largest shipping hubs in the world.
Privately held Prodalim ultimately identified a property in South Gate that has long been used as a food processing facility. The new tenant will handle all the upgrades needed to turn the building into a specialized refrigeration and distribution facility.
The South Gate site was critical for keeping the fruit offloaded from the nearby ports fresh, Sandoval said. It’s also close to operations of major customers of Prodalim’s, such as Kraft, Nestle, Langer’s, and Pepsico.
Prodalim Group has been providing juice concentrates, fruit blends, pulp cells, essential oils, and purees since 1997 to juice and beverage companies worldwide, according to its website. It entered the U.S. market in 2017, with a plant in Florida, adding a New Jersey facility in 2019.