The Location
Santa Fe Springs sits in the mid-Cities industrial corridor, roughly eight miles south of downtown LA and carries a 7.1% vacancy rate.
The Setup
10400 Pioneer Blvd is a two-story, 48,481 SF Class B flex/light manufacturing building on 2.36 acres. Built in 1981, renovated in 2021.
What an Operator Sees
366 days on market and a 19% price cut tells me more than the $180/SF sale price. I like the $180/SF Basis.
The seller started at $10.8 million. The property sat for a year before finally trading for $8.75 million and $2 Million Below the Ask.
That tells me there wasn't a buyer that was going to just buy at any price. Seller had to reduce.
It was a renovated, 100% leased flex property on 2.36 acres.
To me, in this major downturn, there could be opportunities that start showing up in Industrial if you could buy something like this for $150/SF
I'm not looking at the $10.8 million asking price. I'm looking at where a real buyer finally wrote the check: $8.75 million, $180/SF.
The buyer now owns 2.36 of Land and a good basis.
The lesson for me isn't that industrial is weak. Its that there might be an opportunity that shows up over the next few years as one of the best assets to own.
As I look for my next acquisition, these are the deals I'm watching:
The time on market, price reductions, and a final basis where the numbers start making sense.
Property and transaction data: CoStar Research.