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Friday, Mar 31, 2023

Downtown Industrial Property Sells for $94 Million

The Box Yard, a 261,528-square-foot industrial property downtown, has sold for $94

Brentwood-based Rexford Industrial Realty Inc. purchased the four-building property at 2445 E. 12th St. from Bridge Industrial.

Bridge Industrial had purchased the property for $68 million in 2019 and made $4 million worth of capital improvements.

Renovations included the interior and exterior of the property. Bridge added office space at each of the property’s 11 units with entrances, restrooms, conference rooms and open and private offices.

The property also got new signage, landscaping, lighting, a new entrance and improved security. The changes were designed by Gensler.

“The Box Yard is a unique asset as one of the last purely industrial properties located in the Arts District of downtown Los Angeles — in executing our value-add business plan the building is now set apart as a one-of-a-kind facility capable of accommodating today’s continuously evolving ecommerce companies,” Brian Wilson, a partner at Bridge Industrial, said in a statement.

“The explosion in demand for and limited supply of Class A, state-of-the-art warehouses in the Los Angeles submarket, particularly since the pandemic, made The Box Yard an ideal destination for forward-thinking users seeking a contemporary space in a strategic location. This asset will continue to be a destination for growing tenants as well as the buyer,” he added.

Tenants at the site include ecommerce company Rockstar Original, sustainable and recycled apparel company Bureau Apparel Inc., wholesale denim company M.P. Clothing, sneaker and apparel brand Undefeated Inc., skate and media brand Berrics, and ecommerce styling service and subscription company Daily Look.

“Bridge is ecstatic with the execution of the Box Yard’s business plan, repositioning and leasing the property with a leading-edge vision combining headquarters, digital content production, direct to consumer ecommerce sales, warehousing and distribution space,” Kevin Finnegan, director of acquisitions and leasing at Bridge Industrial, said in a statement.

Newmark Group Inc.’s Andrew Briner, Bret Hardy, Jim Linn, Kevin Shannon, Scott Schumacher and Laura Stumm represented the seller in the transaction.

“The scale, location and Class A refurbishment of this project by Bridge Industrial attracted investors across the U.S. Rexford Industrial will surely benefit by outsized future rental growth from tenants seeking functional space in a park-like environment that is proximate to downtown L.A. and the coveted Arts and Fashion districts,” Linn said in a statement.

The property was 94% leased at the time of the sale.

“Investors continue to drive exceptional demand for highly functional industrial assets in gateway markets,” Briner said in a statement. “Furthermore, the opportunity for investors to achieve outsized risk adjusted returns through a targeted lease up strategy at The Box Yard made this acquisition opportunity unique resulting in market leading pricing for our seller.”

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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