SoCal Warehouse Trades for $51M

17707 S Santa Fe Ave. Photo courtesy of JLL

Another property changed hands in Southern California’s hot industrial market. Flux Investments has acquired a warehouse in Rancho Dominguez in an off-market, sale-leaseback transaction from Bocks Canyon Holdings LLC. Public documents show the price was $50.9 million.

A JLL team—led by Senior Managing Director Marc Schillinger—worked on behalf of the buyer to secure a 10-year, fixed rate acquisition loan of $34.8 million. First Republic Bank provided the funds, according to public documents. CommercialEdge data indicates the property previously traded for $8.8 million in 2011.

At approximately $385.6 per square foot, the property traded significantly above the market’s average, which was $295 per square foot, according to CommericalEdge.

The building is a 132,000-square-foot warehouse and distribution facility located at 17707 S. Santa Fe Ave. The Class B asset was constructed in 1973, and features rear loading with six dock doors, sky lights and 120 parking spaces. It also includes an office component, totaling 5 percent of the space.

The warehouse is adjacent to State Routes 91 and 47, providing access to the Los Angeles metro and Southern California area via Interstates 710, 110, 405, 105, 5 and 65. The Ports of Los Angeles and Long Beach are 11 miles from the property.

Flux Investments was formed in 2018 and currently manages more than 1 million square feet of industrial space in Southern California, according to JLL. Port markets like Los Angeles continue to be among the most sought-after in the entire U.S.

As the latest report from CommercialEdge shows, in-place rents for industrial space have risen the most in coastal markets and logistic hubs. Los Angeles rents reached an average of $10.84 as of August, up 7.4 percent year-over-year—190 basis points above the national rate of growth.