Albertsons Cos. Inc. has put two huge Los Angeles County distribution centers up for sale.
Together, they make up “the largest industrial redevelopment and reuse opportunity in Southern California,” according to marketing materials from Jones Lang LaSalle Inc., and could fetch more than $250 million.
The two sites, a 78-acre plot that houses a 1 million-square-foot distribution center in Santa Fe Springs and a 92-acre site with a 1 million-square-foot distribution center in El Monte, have been listed for sale as part of a portfolio that also includes a 54-acre site in Clackamas, Ore.
The centers are used by Safeway Inc. and Vons, which operate under the Albertsons umbrella. Albertsons, based in Boise, Idaho, is owned by an investor group led by New York’s Cerberus Capital Management, which bought the company in 2013 and merged it with the Safeway chain in January.
According to the marketing materials, Safeway and Vons would lease back the properties in a short-term deal while the buyer completes entitlements for redevelopment.
An asking price for the three sites was not disclosed. Louis J. Tomaselli and Zachary P. Niles of JLL’s Irvine office, who are representing Albertsons in the sale of the L.A. properties, declined to comment. Albertsons did not return requests for comment.
John Hollingsworth, executive managing director and industrial leader at Colliers International’s El Segundo office, said industrial land in the El Monte area sells for an average of $30 a square foot, which would value the property at 4300 Shirley Ave. at around $120 million. Industrial land in Santa Fe Springs sells for an average of $40 a square foot, which would value the 12801 Excelsior Drive property at roughly $136 million.
With industrial vacancy rates below 3 percent in the county, demand is high for Class A distribution space, Hollingsworth said. The demand is driven, in part, by the growth of e-commerce. Online retailers seek modern industrial space. The properties Albertsons is selling are Class C, according to CoStar Group Inc., so it is likely that the buyer will keep the use industrial, but will redevelop them into modern Class A distribution facilities, Hollingsworth said.
