Cushman & Wakefield today announced that it represented AEW Capital Management, L.P. in the sale of three parcels of land totaling 4.95 acres in the City of Industry, Calif.
The parcels sold for $6.5 million ($30.50 per square foot) to shoe distributor Great Dragon, LLC. The property offered a rare development opportunity for the buyer in the City of Industry’s “shoe alley,” a highly sought after location preferred by shoe import companies.
“Industrial land demand continues to outpace supply, particularly in well located in-fill submarkets like the City of Industry,” Cushman & Wakefield Senior Director Erik Larson said. “This trend has really pushed land values, which have increased approximately 50% over the last 12 months.”
The parcels, which are located at 18625-18639 Railroad Street, are M1 zoned, permitting light industrial on the site. Great Dragon, LLC plans to develop a building on the property that will total approximately 90,000 square feet.
According to Cushman & Wakefield, at mid-year 2014, 417,077 square feet of industrial product is under construction in the City of Industry submarket of the San Gabriel Valley. Additionally, the San Gabriel Valley’s overall industrial vacancy rate is currently 2.9%.
In addition to Erik Larson, Executive Director John Minervini, Senior Director Robin Dodson and Associate Director Chris Tolles of Cushman & Wakefield’s downtown Los Angeles office represented AEW Capital Management, L.P. in the sale of the land.