Xebec Realty has announced the purchase of an industrial facility in Chatsworth, which the Dallas-based real estate investment company plans to renovate for e-commerce deliveries.
CoStar Group Inc., an online real estate database, reported Xebec paid $37 million.
The industrial site, located at 20730 Prairie St., is the second site the privately held Xebec has acquired in this region in the past month and the seventh investment in the San Fernando Valley across the last three years, Chief Executive Randy Kendrick said.
“We are attracted to this region because it is one of the most sought after industrial real estate markets in the country, due to its excellent access to major freeways and dense population,” Kendrick said in a statement. “As the traditional retail industry continues to shift its business model to align with the growth of e-commerce, both retailers and manufacturers have increased their demand for these types of properties to support inventory distribution, e-commerce order fulfillment and last-mile delivery to consumers. This is a trend we anticipate will continue for the next several years.”
Xebec plans to redevelop the existing 221,842-square-foot property by making office improvements, adding dock doors, installing a new sprinkler system, relocating fire pumps and increasing parking capacity. Redevelopment of the site is expected to be completed within 12 months.
“There is high demand for industrial space in the San Fernando Valley, and we anticipate strong interest from a variety of potential tenants,” Kendrick said.