A 26,000-square-foot industrial building in Van Nuys has sold for $7.1 million.
Chris McKenzie, principal of Lee & Associates LA North/Ventura and Ryan McKenzie at Kidder Mathews represented the buyer, LK Holding. The seller was Chase Van Nuys LP, represented by Jones Lang LaSalle Inc.
The industrial building, located near the Van Nuys Airport, was an important asset for the buyer who was seeking an owner-user expansion given the rapid growth of its e-commerce company, according to Chris McKenzie.
“We were able to move quickly for this buyer, who had been seeking the right asset for the last 18 months or so,” Chris McKenzie said in a statement. “This transaction was a great example of the right asset at the right time. We helped secure a large credit for the buyer during escrow, also accomplishing a competitive low comp in the area.”
The sale of the building — located at 15950-15952 Strathern St. — came at a critical time for commercial real estate with the looming Unite to House L.A. tax initiative.
Known as ULA, the measure, which went effect April 1, added a property tax of 4 % for properties selling for more than $5 million and 5.5% for properties selling at $10 million or more. The parties succeeded in closing the deal before April.
Low vacancy rates of less than 2% for industrial properties in the central San Fernando Valley continue to drive buyers’ interest in the asset class, according to McKenzie.
Case in point: May saw Longpoint Realty Partners acquire an industrial portfolio adjacent to the Van Nuys Airport for $85 million.
Jeff Chiate, Rick Ellison, Mike Adey, Brad Brandenburg and Matthew Leupold of Cushman & Wakefield represented the undisclosed seller in the transaction.