Real estate and construction firm J.F Shea Company has reportedly snapped up a warehouse in Los Angeles' red-hot industrial market.
An entity tied to Shea has acquired 3951 Capitol Avenue in City of Industry, located roughly 15 miles east of Downtown L.A., from industrial pump manufacturer ITT Goulds Pumps for $17.9 million, a price below market rate, CoStar reported Tuesday.
Representatives for J.F. Shea and ITT Goulds did not respond to requests for comment.
The warehouse spans 136,500 square feet and sits on a 287,000-square-foot lot in the almost-exclusively industrial City of Industry in the San Gabriel Valley, according to Los Angeles County property records. The site is blocks away from the Rose Hills Road exit on Interstate 605, known as the San Gabriel River Freeway.
The surrounding areas of east L.A. County and the neighboring Inland Empire have proven among the most in-demand industrial real estate markets in the nation — with e-commerce, supply chain and logistics tenants hungry for space in the nation's second-largest metropolitan area and near the ports of Los Angeles and Long Beach.
In turn, industrial landlords have flocked to the market for warehouses in Southern California. Recent deals have seen Nuveen pay more than $151 million for a fully leased, 337,000-square-foot distribution facility in La Mirada — nearly twice what the seller, Clarion Partners, paid for the property two years earlier — while Blackstone's Link Logistics bought an 82,200-square-foot industrial building in Montebello for $29.3 million, or an eye-watering $356 per square foot.
In other Southern California industrial news, Rexford Industrial Realty obtained a $60 million loan from Capital One to refinance a portfolio of six properties in Los Angeles, Orange and Ventura counties, Commercial Observer reported Wednesday.