A distribution facility in Simi Valley has sold for $128 million, or roughly $441 per square foot.
The 290,220-square-foot single-tenant industrial site, located at 400 National Way, was 100 percent leased to an e-commerce giant and serves as a last-mile distribution facility, according to a statement by Newmark, which transacted the deal.
The Business Journal has previously reported that the occupant is Amazon.com Inc.
A private family office investment company has purchased the site, which was recently converted into warehouse space.
Newmark Executive Managing Directors Bret Hardy, Jim Linn, Andrew Briner and Ken White and Co-Head of U.S. Capital Markets Kevin Shannon represented the seller, Greenlaw Partners, a Southern-California-based investor and developer.
“Once again, Greenlaw executed on its unique and market-leading vision for the conversion of this former office call center facility,” said Hardy in a statement. “400 National represents an extraordinary example of a partnership between developer and user, in creating a highly functional and truly last-mile delivery station in the burgeoning North Los Angeles submarket.”
The former office building has been extensively renovated in the last year to accommodate the tenant’s warehousing and product delivery needs, including significant loading and van staging areas.
The user also invested significant capital into the building to create a highly functional, last-mile delivery facility, according to Newmark.
400 National is situated on a nearly 44-acre parcel adjacent to State Route 118.
The deal comes during a time when industrial inventory is scarce as demand has reached a peak high. According to Colliers International research, San Fernando Valley, with 90,086,674 square feet in inventory and only 25,436,382 square feet in the West Valley, saw 0.8 percent vacancy in the third quarter.
Newmark Research data saw the Los Angeles industrial market total 1.05 billion square feet with the lowest industrial vacancy rate in the U.S., at 1.5 percent, as of the second quarter. The vacancy rate has remained below 3 percent for 37 consecutive quarters.