LA Industrial Facility to Sell for $77M
- Feb 26, 2021
Armstrong Flooring has entered into an agreement to sell its South Gate, Calif., production facility to an affiliate of Overton Moore Properties. The transaction was previously mentioned by Armstrong Senior Vice President & CFO Amy Trojanowski in the company’s recent fourth-quarter earnings call.
The $76.7 million deal is set to close within the first quarter. The seller will receive approximately $65 million, while $10.5 million will be held in an environmental related escrow.
Located at 5037 Patata St. on 27 acres, the 206,300-square-foot property is just off Interstate 710, across the Los Angeles river. The warehouse is within 20 miles of the Ports of Los Angeles and Long Beach.
Armstrong announced the planned closure of the facility in December. The company moved the operations to properties located in Illinois and Mississippi, while also opening a 100,000-square-foot warehouse in Southern California to serve as its new distribution center.
As e-commerce boomed in 2020, the Ports of Los Angeles and Long Beach saw record levels of volume, boosting demand for industrial space. According to CommercialEdge, Los Angeles industrial rates were up 7.2 percent year-over-year through January, while the average Inland Empire rent advanced 8.1 percent, two of the sharpest hikes in the U.S., alongside South Carolina, the Bay Area and Seattle.
This month, a national furniture manufacturer leased 572,240 square feet of logistics space at a 1.2 million-square-foot logistics park in El Monte, Calif., another L.A. county industrial facility. CBRE represented the owner, Goodman Group.