Joint venture purchases 15 acres to put up two Class A warehouse buildings in the East San Fernando Valley.
A joint venture of Xebec Realty Partners of Seal Beach and Cornerstone Real Estate Advisers of Hartford, Ct. has acquired 15 acres in Sun Valley to build a $48 million industrial park.
The Sun Valley Industrial Park will comprise two Class A warehouses totaling more than 360,000 square feet at 11063 Pendleton St. in Sun Valley. The site formerly housed a semi-truck storage area.
The buildings, one about 97,000 square feet and the other just over 264,000 square feet, are being built on spec, reflecting the strong demand for warehouse space in the San Fernando Valley, where the third-quarter industrial vacancy rate stood at 1.3 percent, according to Colliers International.
“When you get to the East Valley, the vacancy drops to half a percent, which is problematically low,” said John DeGrinis, Colliers’ senior executive vice president. “At this time, there is arguably not one building greater than 100,000 square feet that is vacant and available to occupy in the entire San Fernando Valley market.”
The site is currently going through the process of entitlement and will need extensive grading before construction can begin, DeGrinis said. He and his team, Patrick DuRoss and Jeff Abraham, will partner with Xebec and George Stavaris, of Triniti Partners Inc., as leasing agents on the property.
Interest in the space has already been expressed by some local entertainment firms and industrial users who currently have facilities in Los Angeles, DeGrinis said.
Stavaris handled the sale of the property for an undisclosed price in October; the seller was a private investor.
Funding for the project is being provided by real estate finance firm PCCP LLC of Santa Monica.