December 18, 2019 – JLL announced today that it has closed the $38.5 million sale-leaseback of 17708 Rowland Street, a 181,730-square-foot industrial warehouse property in an infill location near Los Angeles in the City of Industry, California.
JLL marketed the property on behalf of the seller, Newegg Inc., a leading tech-focused e-retailer in North America. On behalf of its open-end real estate fund, EverWest Real Estate Investors, LLC purchased the asset and executed a sale-leaseback with the seller for 10 years.
“EverWest is excited about acquiring another asset in City of Industry, as it is one of the most sought after and difficult to access industrial locations in the country,” said EverWest Managing Director for Southern California Erik Good.
Situated on 8.1 acres, 17708 Rowland Street is in City of Industry, a Los Angeles industrial suburb in the San Gabriel Valley region of Los Angeles County. This high barriers-to-entry location is within a distribution hub and the San Gabriel Valley Industrial submarket. 17708 Rowland Street has easy access to the SR-60, SR-57, I-10 and I-605 Freeways and is within 35 miles of Los Angeles International Airport and Ports of Los Angeles and Long Beach.
Built in 1998, the building contains best-in-class features, including a 30-foot clear height; 26,654 square feet of office space; skylights; reinforced concrete construction; ESFR sprinklers; 129-foot truck court; 26 dock doors; and two drive-in, grade-level doors. Newegg Inc. has owned and occupied the building as their corporate headquarters since September 2003.
The JLL Capital Markets team representing the seller was led by Senior Vice President Ryan Sitov and Executive Managing Directors Mark Detmer and Bo Mills.
According to a recent JLL Q3 2019 Industrial Research Report, the Los Angeles Industrial market benefits from a diverse and growing tenant base, but e-commerce, especially, continues to drive demand in a tight market that has hovered near historically low vacancy rates for years now. And the vacancy rate remains the lowest of any market in the country — despite another one million square feet of product delivering this quarter— as asking rates continue to creep up. The San Gabriel Valley Industrial submarket ties with two other LA submarkets with the lowest overall total vacancy rate of 1.7%.