UPDATED: 11:55 a.m., Oct. 5:
A New York investor has bought an 82,200-square-foot distribution warehouse in Montebello for $29.3 million.
Link Logistics, a New York-based unit of Blackstone, bought the industrial building on 3.1 acres at 1719 Chapin Road in an off-market deal, the Commercial Observer reported. The seller was Macey Investment, headed by Morris Kessler.
The price came out to $356 per square foot, nearly three times the national average for industrial space and higher than the average price in Southern California.
Brokers Mark Vanis, Jon Reno, Trevor Gale and Sage Segal of JLL represented the buyer in the sale of the building 10 miles east of Los Angeles.
“With a strong Los Angeles industrial market, we are seeing well-positioned investors like Link Logistics look to grow their portfolio,” Vanis said in a statement. “We continue to see rising rents, decreasing vacancy and very little development, causing strong investor demand with no slowdown in sight.”
The national average industrial sales price in the third quarter was $131 per square foot, according to a recent report by CommercialEdge. L.A. County posted an average of $295 per square foot.
Rents rose 16 percent in the second quarter, while vacancy remained near record lows at 0.7 percent across the 776 million-square-foot Los Angeles County market, according to JLL’s second-quarter report.
Link Logistics has worked the market as both a buyer and a seller. The firm acquired 14.5 million square feet in 64 buildings for $2.8 billion, and sold 13.5 million square feet of assets totaling about $1.9 billion, just in the second quarter this year, according to its most recent regulatory filing.
Clarification: Previous version of the story did not include name of the seller.
— Dana Bartholomew
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