Two industrial properties in Rancho Dominguez recently sold for a combined $14.4 million.
Daum Commercial Real Estate Services represented the buyer and the seller in the transaction.
Daum’s Natalie Lara worked with the seller, a cosmetics manufacturer. The buyer, First Industrial Realty Trust Inc., also worked with Daum’s Jordan Lara and Andrew Lara.
The property is at 19400 and 19302 S. Laurel Park Road.
“We immediately recognized that this building’s prime location was well aligned with the buyer’s investment strategy of focusing on the creation of long-term value within infill markets like the South Bay,” Natalie Lara said in a statement.
Chicago-based First Industrial Realty Trust operates industrial assets around the country. It will redevelop the property, according to Natalie Lara.
The redeveloped site is expected to have a nearly 28,000-square-foot building with 15 docks on just under 4 acres of land.
“Sourcing a buyer who could redevelop the asset to access its full potential and fulfill a huge demand in the market required several specific real estate fundamentals to come together. Ultimately, this was a true win-win scenario for both parties involved,” Andrew Lara said in a statement.
The redevelopment is expected to be completed in the third quarter of 2021.
“While this property, as built, is primarily suited to manufacturing and light distribution needs, we strategically determined that the future of this asset could be more of a robust distribution operation, based on its location in a booming logistics environment,” Jordan Lara said in a statement.
Industrial properties are in high demand in L.A., which has led to some new development and lots of redevelopment of existing properties.
In the first quarter of the year, nearly 3.7 million square feet of industrial product was under construction in L.A., according to data from Jones Lang LaSalle Inc. Only roughly 345,000 square feet of that was in the South Bay, which saw one of the lowest vacancy rates in the county at a mere 2.4%.