A publicly traded real estate investment trust is taking the pause in the tumult over tariffs as an opportunity to unload a decades-old asset in Long Beach
EastGroup Properties is asking $87.6 million for the 261,500 square-foot warehouse at 2711 East Dominguez Street, about six miles from the Port of Long Beach.
The price tag of $335 per square foot–more than double the prices fetched by several Class A offices in Downtown Los Angeles lately–with the Los Angeles County industrial sector’s vacancy rate at 4.7 percent vacancy rate, according to a CBRE second quarter market report.
When President Donald Trump first began to threaten tariffs on foreign trade,there were concerns of a chill for the industrial sector throughout Southern California, where imports and exports passing through the ports of Los Angeles and Long Beach drive demand for warehouse and distribution space. The second quarter “began with the Liberation Day tariffs and subsequent escalations,” the CBRE report noted, “but the trade war rhetoric and effective tariffs have softened since then.”
EastGroup properties has a market capitalization of $8.7 billion and has owned the distribution center for decades. The warehouse was built in the 1970s but was renovated around four years ago. It has two loading docks and 47 dock high doors, according to the listing.
In EastGroup Properties’ second quarter earnings release the company said it would redevelop the property and anticipated its plans would cost $9.2 million. EastGroup Properties has other industrial assets throughout Los Angeles.
The change in plans follows a pickup in sales for industrial property in L.A. County, with total volume up 13.7 percent compared to the prior year. The three highest sales for the quarter were: W.P. Carey’s $140.3 million Santa Fe Springs purchase; Benefit Street Partners’ Commerce $97 million portfolio purchase; and MSI Computer Corp’s $65.2 City of Industry buy.
CBRE brokers Bret Quinlan, James Hooks and Jenny Edwards hold the industrial listing. EastGroup Properties and the brokers did not immediately respond to a request for comment.
Read more
Elliott Investment makes move on Rexford Industrial
Rexford Industrial reports 42% jump in profits
