Third-party logistics firm LAX Freight Delivery has closed on a lease deal that will enable it to occupy the entire 123,000-square-foot warehouse at 2187 Garfield Ave. in Commerce, Calif. The agreement represents an upgrade for LAX Freight and will increase its footprint in the Los Angeles County warehousing market.
A JLL team consisting of Jon Reno, Mark Vanis, Trevor Gale and Sage Segal brokered the deal on behalf of Staley Point Capital. Marc DiGennaro of Lee & Associates conducted negotiations on behalf of LAX Freight Delivery. Terms of the lease were not disclosed.
Located just six miles east of downtown and spread across seven acres, the property is owned by a joint venture of Staley Point Capital and Bain Capital Real Estate. The current owners paid roughly $38.5 million for the industrial building in September 2021, securing $31 million in financing from Mesa West Capital just a couple of months later.
“Despite the current economic climate, we see continued interest for industrial space in key infill markets like Los Angeles with buildings offering unique attributes for the supply chain logistics industry,” Reno said. “LAX Freight Delivery was attracted to this recently renovated property because of its low coverage and cross-dock loading configuration.”
In a similar transaction, Dedeaux Properties recently completed a deal for an 882,000-square-foot property owned by 99 Cents Only Stores. The Dart Warehouse — a 24-acre facility in Commerce, Calif. — went for $190 million or roughly $238 per square foot.
Manufacturing users and specialty third-party logistics businesses like LAX Freight Delivery have provided a much-needed boost to the central LA market, which had been struggling due to the prevalence of small and midsize industrial properties within the area.
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