M
SI USA, a computer hardware manufacturer, has acquired a 200,000 square-foot industrial property in the City of Industry for $65.2 million. The purchase price translates to $326 per square foot, a significant investment in the area. MSI is based in the same city as the purchased property.
The sale marks a trend in the market, according to CBRE Executive Vice President Jason Chao, who represented MSI in the transaction. "Users are purchasing real estate across all size ranges, and institutional owners like LINK Logistics are becoming more open to selling assets in Southern California," Chao said.
The acquired property, built in 1985, features a clear height of 26 feet, 18 dock doors, and a 250-foot truck court depth. A recent office build-out added 4,735 square feet, and the site includes a fenced yard for 60 trailers and 56 automobiles.
The San Gabriel Valley industrial market is experiencing high demand, with a gross absorption of 3.8 million square feet in the first quarter. In contrast, Central Los Angeles saw a negative net absorption of 688,187 square feet during the same period. The Rowland Street property's proximity to major freeways makes it "strategically located" for connectivity across Southern California.
The San Gabriel Valley has an industrial vacancy rate of 4.3%, while City of Industry is at 3.8%. In contrast, Central L.A. has a vacancy rate of 5.5% and the Greater San Fernando Valley has a rate of 2.4%.
