Two Warehouse Leases Combine for $30M in One of L.A.’s Industrial Corridors

In the era of supply chain and trade uncertainty, third-party logistics (3PL) and distribution firms are again driving warehouse leasing activity in the nation’s largest industrial real estate market.

Sante Fe Warehouse signed a five-year lease to take the newly completed 157,715-square-foot building at 6501 Flotilla Street in Commerce, Calif., expanding its 3PL footprint to more than 1 million square feet in Greater Los Angeles. The deal is valued at approximately $17 million.

An L.A.-based entity named RBABS Investment 5 owns the property, which features 36-foot clear height space and 18 dock-high loading doors.

About two miles south, NA Trading Company, which imports Southeast Asian foods, signed a five-year renewal valued at more than $13 million at the 140,450-square-foot industrial building at 6021 Malt Avenue.

Records show Seattle-based Washington Capital owns the property. Newport Beach, Calif.-based Real Estate Development Associates (also known as REDA) built the asset, which features 32-foot clear heights with 14 dock-high doors, and sold its stake to Washington Capital.

Carol Taubman of Westgate Industrial Properties represented the tenants on both deals. Jack Cline and Jeff Bethel at Lee & Associates represented RBABS, and Walt Chenoweth and Juan Gutierrez of Voit Commercial represented the owners of the Malt Avenue property.

Third-party logistics leasing surged 65 percent nationwide in the first quarter compared to last year as firms in the field navigate supply chain complexity and seek flexibility during high-risk periods “to efficiently manage volatile demand patterns,” according to JLL’s most recent U.S. industrial market report.

“Given the supply chain shocks experienced over the last five years, from pandemic disruptions to port congestion, 3PLs have become essential partners offering the flexibility and expertise that retailers and manufacturers need to navigate volatility,” the JLL report read.

Keywords: 6021 Malt Avenue, 6501 Flotilla Street, Carol Taubman, Juan Gutierrez, Walt Chenoweth, JLL, Lee & Associates, NA Trading Company, Real Estate Development Associates, Sante Fe Warehouse, Voit Commercial, Washington Capital, Westgate Industrial Properties