Surrounded by industry-heavy Sylmar to the north, Mission Hills to the west and Pacoima to the southeast, the city of San Fernando is one of the smallest cities in the region. With only 2.37 square miles, it retains a small-town atmosphere with its own government and chamber of commerce. Yet it’s the namesake city for the entire Valley. The original Catholic San Fernando Mission, founded in 1797, is now located nearby in Mission Hills.Tom Ross, chief executive of Tekwerks Internet, a business-to-business technology and broadband company based in San Fernando, characterized the place as cozy and accessible.
“When you land here, you’re at the crossroads of the city in the Valley,” Ross said. “It’s the best place to be.” Smallness works as an advantage for businesses with close cultures that are interested in local involvement. Ross noted that elsewhere, a small business can feel like a tiny fish in a big pond.“You can be anywhere in Los Angeles and just get lost,” Ross said. “In Sherman Oaks, you’re just another fish in the sea.” In contrast, he feels involved in San Fernando with local officials.“It’s great to be engaged because at least you have your hand on the lever, no matter how you slice it, it’s good. You can talk to the police chief or the mayor or the City Council,” Ross said. “If you ignore it, you’re not getting the benefit of Mayberry.” Industrial, retail deals In the commercial real estate market, industrial and retail in the city of San Fernando have seen significant transactions in recent months. Like much of the east San Fernando Valley, low inventory fetched high prices. One of the larger industrial deals, a 333,051-square-foot site at 510 Park Ave., sold for $33.7 million in October 2019. Another splashy sale, for a 147,000-square-foot building at 1150 Aviation Place, sold in April 2019 for $29.7 million, or $202 a square foot. Previously, the 44,941-square-foot warehouse at 836 Arroyo Ave., completed in 1976, sold in 2018 for $7.9 million, or $176.
The East San Fernando Valley is also home to a 4,157-square-foot industrial site at 661 Jessie St. The 1983-created structure was purchased for $1.25 million, or $301 per square foot, in October 2019. Owner/users Vartevar Daldalyan and Karine Kaladzhyan occupy the warehouse. Meanwhile at 510 Park Ave., a 26,600-square-foot industrial site sold in that same month for $33.7 million, or $1,267 a square foot. Verizon Communications Inc. has been the building’s single occupant since January 2020.More recently, 1303 Coronel St., a 4,470-square-foot warehouse built in 1928, sold for $1.3 million, or $296 per square foot, in December. In November, a 7,020-square-foot, 1929-erected site at 606 Ilex St. sold for $1.2 million.
In the retail market, a 5,240-square-foot storefront built in 1972 at 101-103 N. Maclay Ave., home to tenant Industrial Shoeworks, sold for $2 million, or $383 a square foot, in October. In March 2019, 968 N. Maclay Ave., a 12,000-square-foot space hosting laundromat La Buenisima Lavanderia, sold for $2.2 million.
Also, in May 2019, the 1,300-square-foot property at 1203 N. Maclay Ave. went for $1.42 million. Economy Test Only, an automotive business, is the facility’s only tenant.
The office sector also saw its share of deals, although the inventory in San Fernando skews to small buildings. 618 San Fernando Road, a 7,030-square-foot building sold in November for $2 million 456 San Fernando Mission Blvd., a 9,622-square-foot building what was built in 1960 and renovated in 2006 sold for $4 million, or $419 a square foot.Coronavirus impactA Sylmar native, Ross moved to San Fernando in the mid-1980s, joined the San Fernando Chamber of Commerce in the late 1990s and got involved once again after the Great Recession. By last year it had roughly 80 members with 12 active board members steering it.
Tekwerks, Ross’ business, is located on Brand Boulevard, three blocks from San Fernando Road. Ross has operated his business for several decades, but the coronavirus pandemic has brought hardship to him and the city of San Fernando.Ross said he was able to float on PPP money and a low-interest loan to keep his enterprise afloat.
“We were here the entire time, we never took any days off,” he explained. “Our infrastructure business dropped 60 percent. Our internet business was steady but did not make up for the loss. It kept us afloat.” As for industrial tenants, San Fernando is home to blue-collar businesses such as carpenters, plumbers and electricians. “The Northeast Valley is home to the people who do the work,” Ross said. “There’s a lot of contractors who are still working.” Retail and restaurants, however, are another story. The retail tenant mix in the city reflects its local population, according to Ross.
While the city of San Fernando used to be of predominately Dutch, German and Italian heritage, Ross said that immigration has brought “a fresh crop of people,” mostly Mexican, in recent decades.“We like to say is that a lot of the retail we have here is ‘celebration’ retail,” said Ross, referring to life events such as holy communion, quinceañeras and graduations in the Latino market. Flower shops, tuxedo rentals and catering outfits support those celebrations, “all of which stopped in its tracks,” due to the pandemic, Ross said.
Ross has seen a succession of storefronts go dark, either temporarily or permanently. While James’ Restaurant is still open after some 50 years, “a dance studio open for over 10 years, she shut down,” Ross said.
As for other retailers, “most of them closed, but it’s unclear who will reopen,” Ross added. “Is their landlord going to make up for back rent? Are they ever going to be successful again? There’s so much uncertainty.”
Industrial Might in the Heart of the Valley
