CBRE Announces Sale of Cold Storage Facility in Central Los Angeles to Rexford for $18.2 Million

19 Dec 2018

sheilapsot

Los Angeles – CBRE announced the sale of a cold storage facility in Central Los Angeles to Rexford Industrial for $18.2 million.

CBRE’s Mark Shaffer, Anthony DeLorenzo, Gary Stache, Doug Mack, Jeff Stephens and Art Rasmussen represented the seller, an unidentified life insurance company. The buyer was self-represented in the transaction.

The 74,527 square-foot property, located at 6100 Sheila Street in Commerce, CA, is a multi-tenant cold storage facility, featuring a centralized refrigeration system, convenient rail and freeway access and abundant surrounding amenities. It is 100 percent leased to a mix of well-established regional and national food distributors.

“The transaction received strong interest and multiple offers, reflecting great demand for quality industrial assets in gateway locations,” said Shaffer. “Several of our last transactions involved a competing bidding process that attracted a diverse selection of bidders who were sourced through multiple channels.”

Los Angeles industrial rents have increased more than 10 percent in the past year due to strong demand from tenants and investors, according to Stephens. “It’s been particularly pronounced in the Commerce submarket, due to its central location, where vacancies have been pushed below 1 percent.”

Especially cold storage industrial facilities have been highly sought after, buoyed by the growth of online grocery sales, which could result in demand for up to 35 million square feet of U.S. cold-storage space, according to a report from CBRE.

“The primary drivers for cold storage facilities include population growth, particularly in metro areas, the continued demand for frozen food, the change of consumer consumption habits, and the demand from the evolving ‘food halls’ concept,” said Rasmussen, CBRE’s industrial expert and senior vice president for its Food Facilities Group. 
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.