A six-year lease for a food manufacturing facility has closed in the city of San Fernando for $2.3 million.
The 23,925-square-foot property is located at 1530-1606 First St. It currently features multiple coolers, food prep areas, washrooms, floor drains throughout and a large lot with private gated concrete yard.
Executive Managing Director Yair Haimoff with Spectrum Commercial Real Estate brokered the transaction on behalf of the undisclosed new tenant, while Greg Geraci with Colliers International represented the private landlord.
“Our client needed additional space to grow its food manufacturing operation; however, it was extremely difficult to find additional space due to the low vacancy rate of industrial product, especially food manufacturing facilities,” Haimoff said in a statement. “Some of our food users give up looking for existing food use facilities and focus on converting general industrial space into food uses. However, the cost of converting industrial space into food manufacturing is extremely expensive and the process is very long. Once this property came on the market, we needed to act quick and place an offer. The negotiations went smoothly, and we were successful in securing a long-term lease.”
Industrial sales have flourished during the pandemic, and the demand for refrigerated warehouse space has seen investments pouring in due to the demand for grocery deliveries and meal kit companies, according to Spectrum.