Top industrial deals prove sector’s resilience in 2022

Largest 10 sales in LA County total to more than $1B

2901 Fruitland Ave, 14001-14007 & 14014-14051 Rosecrans Avenue and 920 E Pacific Coast Highway (Loopnet, Getty)
2901 Fruitland Ave, 14001-14007 & 14014-14051 Rosecrans Avenue and 920 E Pacific Coast Highway (Loopnet, Getty)

Investors continued to pour hundreds of millions of dollars into industrial properties this year in spite of rising interest rates.

The top 10 industrial deals across Los Angeles County amounted to $1.05 billion — just under last year’s $1.1 billion. Industrial was arguably the hottest asset class in 2021.

The top three deals all broke $100 million, showing investors are still bullish on a sector with extremely low vacancy and benefiting from the rise in e-commerce. Though most industrial properties are located in the Inland Empire, which encompasses both San Bernardino and Riverside counties, L.A. is still a huge hub for warehouses and distribution centers, given proximity to the ports of Los Angeles and Long Beach.

Here are the five priciest industrial deals to trade in 2022:

1. 2901 Fruitland Avenue, Vernon | UBS | $181 million

In August, investment bank UBS paid $181 million for a 662,000-square-foot, three building complex in the industrial city of Vernon, showing the institutional shift to own warehouses.

Bottle manufacturer O-I Glass sold the property and leased it back, a common occurrence for long-time warehouse owner-operators who are now cashing out of their portfolios and taking advantage of high prices.

The deal, which was brokered by CBRE, came out to around $273 per square foot.

2. 14001 & 14014 Rosecrans Avenue | Nuveen | $151.2 million

Nuveen, the real estate investment arm of pension fund TIAA, bought a roughly 335,000-square-foot warehouse at 14001 and 14014 Rosecrans Avenue in the southeastern city of La Mirada.

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Clarion Partners, which both invests heavily in and develops industrial properties across Southern California, and partner Farmers Insurance sold the property. The $151.2 million deal, which closed in October, came out to around $448 per square foot. Cushman & Wakefield brokered the deal.

3. 920 East Pacific Coast Highway | Rexford Industrial Realty | $100 million

In Wilmington, one of the most active buyers of industrial, Rexford Industrial Realty, bought a 148,000-square-foot warehouse for $100 million, or about $675 a foot.

Rexford, which spent $978 million on industrial properties in the third quarter alone, bought the warehouse from Al Dahra ACX, a UAE-based agricultural firm. Al Dahra leased back the property located at 920 East Pacific Coast Highway.

4. 120 North Puente Avenue | TA Realty | $92 million

In the city of Industry, developer TA Realty bought a 254,000-square-foot warehouse at 120 North Puente Avenue for $92 million from an entity named JCS Properties. Classic Beverage, which distributes brands including Fiji Water and Nestle Pure Life, leases the warehouse.

The deal, which was brokered by Stream Realty Partners, came out to $363 per square foot.

5. 6000 Bandini Boulevard | Rexford Industrial Realty | $91.5 million

Rexford negotiated two of the top five deals this year. In July, the REIT bought a 182,000-square-foot warehouse in Commerce for $91.5 million, or about $500 a foot. JLL brokered the deal on behalf of Rexford.

The seller was a limited liability company called 500 Bandini — an entity linked to Moises Cosio, an heir to a banking and real estate fortune in Mexico. Cosio had also signed a loan document in December 2020 for the building, located at 6000 Bandini Boulevard.

The complex spans two warehouses on about 10 acres.

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