CenterPoint Properties Trust has acquired 2883 East Victoria Street, a single-story, 123,199-square-foot industrial building in Rancho Dominguez, from Big Tree/Big Sleep. The transaction was arranged on behalf of the buyer by Steve Bohannon, Rooney Daschbach and Rusty Smith of the Los Angeles-South office of commercial real estate services firm Cushman & Wakefield, Inc.
The seller utilizes the facility for the manufacture of futons, and under the terms of the transaction will continue to occupy the site on a short-term leaseback. The Chicago-based CenterPoint plans to convert the facility for distribution use offering 105,000 square feet of space, a repositioning that is expected to be completed by mid-2013.
"This was an off-market opportunity, with the seller continuing to pay rent while CenterPoint obtains their entitlements," said Bohannon. "It occupies a quality corner location, and CenterPoint's vision is to convert it to take advantage of what the South Bay market of Los Angeles needs, meeting increased demand from port-related tenants."
Rancho Dominguez, an unincorporated section of Los Angeles, offers proximity to the ports of Los Angeles and Long Beach. The newly acquired property is rail-served, and is close to the I-91 and I-710 freeways.
"From a real estate investment standpoint, the market is improving, with demand outpacing supply," said Bohannon. "CenterPoint's latest acquisition has excellent access to the ports of LA and Long Beach and is in a strategic location, which is improving economically and offers a diverse and deep labor pool."
Cushman & Wakefield's industrial brokerage platform provides global resources and local expertise for tenant and landlord representation, disposition and acquisition services, transaction management, and industrial consulting including labor and demographic analysis. In 2011, in the U.S. alone, this group completed more than 6,100 industrial real estate transactions - totaling 225 million square feet - with an aggregate value in excess of $6.5 billion.