An industrial property in Irwindale that is ripe for redevelopment has sold to Rexford Industrial Realty Inc. for $40 million.
Daum Commercial Real Estate Services transacted the sale of the 8-acre parcel, which includes a pair of buildings that total more than 67,000 square feet. Dennis Sandoval, executive vice president and principal at Daum Commercial, along with Daum Associate Vice President Kevin Sandoval and Associate Bryan Sandoval, represented the seller, DS Services of America, Inc., a water-bottling and distribution company, in the transaction.
Located at 4510 Azusa Canyon Rd., both assets were built in 1950. The property consists of a 52,780-square-foot class C industrial building and a 14,728 square-foot building situated on an 8-acre corner lot.
The infill property is close to major transportation routes including the 605, 10 and 210 freeways.
The structures come with 24-foot clear height as well as ample parking with a fully fenced and secured lot.
Dennis Sandoval, who also represented buyer Rexford, said the deal was the organic culmination of a long-time professional relationship with the seller.
“Harnessing our deep understanding of and longstanding relationships in the Los Angeles industrial market, we were able to identify the ideal buyer/seller match-up and negotiate sales terms that met the requirements of both parties,” said Dennis Sandoval in a statement. “Our team has been assisting DS Services with their business real estate needs since 2007. This transaction was the result of a long-term relationship where the best interests of the seller resulted in a successful sale.”
According to Dennis Sandoval, Rexford Industrial purchased the property as a “leased investment” with the potential for redevelopment in the future.
“On behalf of both parties, we negotiated a sale-leaseback that allowed for a five-year lease with an option to extend,” Sandoval said. “This was a beneficial, strategic transaction for the seller and the buyer.”
According to a Daum report, the San Gabriel Valley submarket, where the property is located, is experiencing extremely tight industrial direct vacancy of 1.9% as of the fourth quarter, and overall industrial vacancy declined by 6 basis points from the previous quarter. Asking rents increased by 1.3% to a record high of $1.53 per square foot in the fourth quarter.
With no available inventory during that time, industrial supply is under pressure, leading to strong interest in the asset from the investor community, according to Kevin Sandoval.
“More than 12 qualified offers for this property were submitted for consideration, which demonstrates investors’ appetite for well-located, high-quality industrial assets in the Los Angeles market,” Kevin Sandoval said.
Rexford has entered the year on a buying spree. The Sawtelle-based REIT bought the 81,600-square-foot headquarters of Fox Racing in Irvine earlier this month for $40 million. Newmark Group Inc. brokers Paul Jones, Kevin Shannon, Bret Hardy, Ken White and Brandon White represented the seller.
Fox Racing — a retailer of motocross and mountain bike gear — had been occupying the 6.4-acre site since its creation in 2012. The apparel company was purchased by Minnesota-based Vista Outdoor in August for $540 million.
