Xebec Realty Partners bought an old industrial property in Sylmar and is planning to redevelop it in a new Class A complex.
The Dallas-based industrial firm purchased a 105,000-square-foot building on a six-acre site at 12975 Bradley Avenue for $24 million, or around $91 per square foot for the land, according to Newmark, which brokered the deal.
Howmet Aerospace sold the complex. The Pittsburgh-based metal manufacturer for planes occupies the space, though it’s unclear when its lease expires.
Xebec is planning to demolish the complex and build a Class A facility on the site. The current structure was built in 1966 and most recently renovated in 1972.
Any redevelopment is made easier by the property’s entitlements — it’s currently zoned for an array of uses, ranging from wholesale and storage to light manufacturing.
Xebec’s deal is another example of how industrial investors are redeveloping older industrial and office buildings to offset lack of available land across Southern California.
Soaring demand for industrial space has helped push industrial land costs up three-fold since 2015, according to Newmark, averaging $165 per square foot.
Around 25 million square feet of new construction was delivered across the infill market of Los Angeles County — that represents around 0.2 percent of all industrial space.
Xebec’s acquisition in Sylmar marks its second project in northwest San Fernando Valley. Xebec is planning to build more than 600,000 square feet of industrial space across 28 acres of land it bought less than two miles away for $92 million in 2020.
In that deal, the seller was also an aerospace firm — L3Harris Technologies.
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