Hager Pacific Buys LA Distribution Center

13255 S. Broadway and 360-366 W. 132nd St. Image courtesy of DAUM Commercial Real Estate Services

Hager Pacific Properties has acquired a 145,000-square-foot distribution center in Los Angeles’ South Bay area for $17.3 million. DAUM Commercial Real Estate Services arranged the transaction on behalf of the seller, a private investor.

Located in the Willowbrook neighborhood at 13255 S. Broadway, the property situated on 5.3 acres encompasses a 108,000-square-foot building and a second 37,000-square-foot warehouse. The asset offers roughly one parking space per 1,000 square feet and a 122-foot truck court, according to CommercialEdge data.

The distribution center is some 12 miles south of central Los Angeles via the nearby Harbor Freeway and roughly 10 miles east of Los Angeles International Airport.

At the time of the transaction, the multi-tenant property was fully leased. California Label Products has been anchoring the property since 1998. The Regan Group Fulfilment Warehouse is the tenant of the second building.

Value-add strategy in crowded market

California-based Hager Pacific Properties specializes in acquiring and renovating old, environmentally impacted or underperforming industrial properties. The strategy might prove valuable in gateway markets where warehouse supply is scarce.

Los Angeles industrial continues to display one of the country’s most stable fundamentals. According to a recent CommercialEdge report, the metro led the U.S. for industrial rent growth, at 6.7 percent year-over-year as of June. The metro’s average vacancy rate also remained among the lowest nationwide, clocking in at 3.5 percent, outperformed only by Inland Empire’s 1.6 percent among major metros.