A five-building portfolio in Valencia and Santa Clarita has sold to Chicago-based real estate investment trust Jones Lang LaSalle Income Property Trust Inc. for about $64.5 million, according to the company.
The warehouses total nearly 492,000 square feet with properties ranging in size from 31,300 square feet to more than 142,000 square feet. The seller was Clarion Partners, according to JLL Income.
The REIT, which is advised by LaSalle Investment Management Inc. and sponsored by Chicago’s commercial real estate brokerage Jones Lang LaSalle Inc., said there’s a limited amount of vacant land available for building industrial warehouses in the L.A. market, and there’s a lot of competition for redevelopment sites.
Allan Swaringen, chief executive of the REIT, said the properties have strong potential for rent increases.
“LaSalle’s research and strategy team identified this as one of its proprietary industrial target markets and projects strong annual rent growth for the next three years on in-place rents estimated to be already 10 percent below current market rents,” Swaringen said.
Bo Mills and Mark Detmer, managing directors of the brokerage firm Jones Lang LaSalle, and Brad Koehler, executive vice president, negotiated the deal.