The City of Los Angeles bought an industrial property downtown, adjacent to another city-owned yard operated by the Department of Transportation.
The parcel, at 1910 E. Washington Blvd., sold for $10.3 million. Marcus & Millichap Inc.’s Michael Matter and Nicholas Phillips represented the seller, a private partnership. The partnership purchased the property in 1992 for an undisclosed amount.
The City of Los Angeles was self-represented.
The property includes a 13,200-square-foot building and is currently leased to rental car company Avis Budget Group Inc., which has roughly 18 months left on the lease. Its annual rent is $192,000 a year, according to CoStar Group Inc.
Matter said the purchase was an expansion opportunity for the city’s operation. “The intent is to ultimately use it and expand their yard next door,” he said. Matter said the seller received multiple offers for the property, which took about four months to close.
L.A.’s industrial property market — particularly parcels near population centers — has seen extraordinarily tight demand in recent years as ecommerce drives the need for delivery and logistics operations that can reach customers in one to two days.
During the first quarter of the year, 9.3 million square feet of industrial space in L.A. County sold or leased, according to Jones Lang LaSalle Inc., and industrial properties notched a mere 2.2% vacancy rate.
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