Israel-based beverage company Prodalim Group USA has signed a 10-year lease worth approximately $17 million for an industrial property in South Gate.
The lease is for a 60,000-square-foot food processing facility that sits on two acres at 12128 and 12228 S. Center St.

DAUM Commercial Real Estate Services’ Dennis Sandoval, Kevin Sandoval and Bryan Sandoval represented Prodalim Group in the lease. CBRE Group Inc.’s Arthur Rasmussen Jr. and John Biven represented the landlord, the Lee and Hope Warner Family Trust.

“Prodalim was seeking to expand its operations in the U.S. and engaged us exclusively to identify its first West Coast facility, based on our deep experience in the Los Angeles Basin, one of the most competitive industrial markets in the country,” Dennis Sandoval said in a statement. “While many food-related companies … are looking outside the state to fulfill expansion and relocation needs due to the competitive market, for Prodalim, the close proximity to the Los Angeles and Long Beach ports was a critical element in the site selection process, due to its fruit products and the need for quality and freshness. Major regional thoroughfares, major customer locations such as Kraft, Nestle, Langer’s, and Pepsico, and the large population hubs unique to Southern California offer growth potential which will significantly drive national growth.”

Prodalim will upgrade the property to create a specialized refrigeration and distribution facility that will work for the company’s needs.

L.A.’s industrial market has seen increased activity over the past year. The South Gate market had less than 23,000 square feet of inventory available and a vacancy rate of a mere 0.22% in the fourth quarter of 2021, compared to the county average of 0.51%, according to data from CBRE Group Inc. The lease rate for the market was $1.95 a squarfoot, above the county’s average asking lease rate of $1.29 a square foot, CBRE found.