Cohen Asset Management Buys LA Facility for $57M

7255 Rosemead Blvd.

Cohen Asset Management has expanded its Los Angeles industrial portfolio with the acquisition of a logistics facility in Pico Rivera, Calif., for $56.5 million—an all-cash transaction. The seller was Studio Designs, CommercialEdge data shows, which owned the asset since 2004.

The property previously traded for $12.3 million, when Studio Designs acquired it from developer Sares-Regis Group. In 2018, the property became subject to a $13.5 million loan, held by Genworth Financial, due February 2034.

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The 202,629-square-foot, Class A facility sits on a 9-acre site at 7255 Rosemead Blvd., within the Pico Rivera Commerce Center. Constructed in 2004, the building offers a 32-foot clear height, 36 dock-high and two grade-level loading doors with leveler and bumpers, sky lights and access to three-phase 277/480 volts of electricity service.

The site also benefits from a parking ratio of 0.6 spaces per 1,000 square feet, as well as a 130-foot-deep truck court. The facility is fully leased to Pacific Logistics. Besides its frontage on Rosemead Boulevard, the warehouse also offers quick access to interstates 5 and 605, both within a 2-mile radius. A BNSF rail yard and UPS Freight location are also within 2 miles of the property.

The facility is well-positioned to benefit from the continued supply/demand imbalance currently recorded by Southern California infill locations, Cohen Asset Management’s Director of Acquisitions Maxx Cohen said in a prepared statement. The warehouse traded at roughly $279 per square foot, above the average $205 recorded across Los Angeles industrial sales year-to-date as of June, according to CommercialEdge data.

“Assuming demand continues to outweigh supply, upwards pressure on rents and prices should continue and users will continue expanding their geographic parameters to find adequate space,” Cohen told Commercial Property Executive.

Hot location

Sares-Regis Group developed the surrounding area for industrial and retail use. In 2001, the Irvine-based developer acquired Northrop Grumman’s 155-acre stealth bomber skunkworks site. The property was redeveloped into 1.9 million square feet of corporate headquarters distribution buildings, as well as 55 acres of retail. Corporate neighbors include Iron Mountain, Walmart, Lowe’s Home Improvement, Toshiba Business Solutions and several others.

Cohen Asset Management acquired more than 3 million square feet of industrial and logistics properties year-to-date, valued at more than $400 million. In March, the private investment firm acquired an Amazon Distribution Center in Grand Prairie, Texas.

West Coast port markets are leading the way in terms of rent growth for industrial assets, according to CommercialEdge, with trade volume rebounding from the pandemic-induced downturn. In Los Angeles, rents grew by 6.7 percent in the 12 months ending in June—the highest among major U.S. markets. The area is also recording some of the lowest vacancy rates, with L.A. at 3.5 percent as of June.