A story in the September 12 issue headlined “San Gabriel Valley Industrial Property Sells for $29M” misstated the location of the AFL-CIO Building Investment Trust. It is based in Washington D.C.

The San Gabriel Valley just saw one of the biggest industrial sales in recent years. A new industrial property of 168,000 square feet in the City of Industry sold for $29 million, or $173 a square foot, to AFL-CIO Building Investment Trust, based in Washington D.C.

The seller, Newport Beach-based CT Realty Partners, purchased the site on Louden Lane for just $6.2 million in 2013, when it was home to McConnell Cabinets Inc. CT Realty tore down that structure and it replaced it with new construction last year.

With demand so strong that L.A.’s industrial vacancy rate is below 1 percent, according to second quarter data from Jones Lang LaSalle, developers are likely to continue switching out aging facilities for new ones.

“It’s happening more and more because there’s more demand for state-of-the-art buildings,” said CBRE Vice Chairman Barbara Emmons, who brokered the sale with Vice Chairman Darla Longo. “You’re forced to tear stuff down because there’s no land left.”

In this case, the fresh construction was attractive to AFL-CIO Building Investment Trust because it helped ensure a higher lease rate, Emmons added.

According to CoStar, the site is fully leased to Wayfair, a Boston-based e-commerce company that sells home décor and furniture. Emmons said the lease is good through 2021, and that the company chose this site for the convenient access to Southern California consumers.

In the San Gabriel Valley’s last high-value industrial sale, according to CoStar data, a 167,000-square foot site in Rosemead was purchased in 2014 for $17.5 million, or $105 a square foot.