Southern California-founded fulfillment company River Plate Corporation recently agreed to lease Rexford Industrial’s property at 2950 Madera Road in Simi Valley, Calif. A Lee & Associates – LA North/Ventura team of Scott Caswell and Erica Balin represented the tenant in the lease negotiations. The deal reportedly closed for nearly $16 million and encompasses roughly 136,000 square feet of suburban Los Angeles industrial space.
“Scott and I have worked closely with River Plate over the years, and when their sublease was coming to an end, we were engaged to evaluate suitable facility options for their operation,” Balin said. “As part of the process, we were able to hold discussions with the master lessor of the property and come to mutually beneficial terms versus a move. The tenant had been subleasing the location now for several years. When they began to consider moving options, they opted to engage us to negotiate a direct lease to secure the space.”
River Plate Corp. signed a full building lease for 2900-2950 North Madera Rd., in Simi Valley. Property image courtesy of CommercialEdge.com
Located less than a mile from a major transportation artery in the area — California State Route 118 — the property is situated on a nearly 10-acre lot and comes with more than 200 grade-level parking spaces. Features include six-inch-thick floors; 31-foot clear height; ESFR sprinkler system; insulated ceilings; skylights; a mezzanine level; a 105-foot-deep truck court; and 13-foot, dock-high doors that can expand to 25 feet if needed.
“The Simi Valley and surrounding areas remain an excellent location for companies in the warehousing and fulfillment center market,” Caswell said. “These locations offer easy access, plenty of parking, and well-designed warehousing space that — given the expansion of the e-commerce market — is critical for e-commerce companies. As a result, there is a strong need for these types of facilities.”
According to recent industrial real estate reports by CommercialEdge, the industrial vacancy rate across the Los Angeles market was below 5% in February 2024. Data also showed that Los Angeles was one of only four coastal U.S. markets where the year-over-year growth of in-place industrial rents was larger than 10% — Inland Empire, Calif. (12.7%); Miami (12.0%); Orange County, Calif. (11.4%); and Los Angeles (11.4%).
With an average of $14.14 per square foot, industrial space in Los Angeles claimed the second-priciest in-place rents among Western U.S. markets in February, following the $15.29-per-square-foot average in Orange County. Meanwhile, industrial assets in the Los Angeles market topped the list in terms of year-to-date sales with $435 million-worth of properties changing hands here during the first two months of 2024.
The lease includes more than 130,000 square feet of suburban Los Angeles industrial space in Simi Valley. Property image courtesy of CommercialEdge.com
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