Pacific Industrial has paid $44 million for an industrial building on nearly 10 acres in City of Industry, with plans to tear it down and build a 215,000-square-foot warehouse.
The Long Beach-based developer purchased the 9.8-acre property at 17969 Railroad Street, the Los Angeles Business Journal reported. The seller was Reuland Electric, a locally based motor maker.
Pacific bought the 75,000-square-foot building in the San Gabriel Valley as a short-term sale leaseback — a deal in which the company that sells a property can lease it back from the new owner.
When the deal closed, Reuland signed a one-year lease for the 56-year-old building to wind down operations.
When the lease ends next year, Pacific plans to demolish the building and replace it with a spec warehouse with EV charging stations, solar-ready roofs, parking for cars and trailers, and a two-story glass-sided office. The price for the teardown building works out to nearly $587 a square foot.
The project, if approved, is expected to be completed in 2025, after which it will be marketed for a single tenant.
Pacific Industrial, founded in 2012 by Dan Floriani and Neil Mishurda and now based in the Marina, owns industrial real estate with such tenants as Relativity, HydraFacial, Amazon.com, FedEx, JD.com and BNSF Railway, according to the Business Journal.
— Dana Bartholomew
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