IDS Real Estate Spends More Than $125 Million on Azusa Property
The roughly 432,500-square-foot Azusa Industrial Center in Azusa, California, is located at 823-985 W. Eighth St. The property is around 25 miles northeast of downtown Los Angeles. (CoStar)
By Jack Witthaus
June 30, 2023 | 1:33 P.M.
A Los Angeles real estate investment firm has purchased a large industrial property despite a broader slowdown in commercial real estate sales this year due to rising interest rates and economic uncertainty.
IDS Real Estate Group bought the roughly 432,500-square-foot Azusa Industrial Center at 823-985 W. Eighth St. in Azusa for $126 million, or about $291 per square foot, according to someone familiar with the deal. The seller was New York-based investment bank Morgan Stanley. The property is fully leased.
The sale is the fifth-largest industrial sale in terms of total price in greater L.A. this year, according to CoStar data. The transaction also is the biggest industrial sale in Azusa in terms of total price in the past decade, according to CoStar data.
Industrial sales have been lower this year in greater Los Angeles, one of the nation's most desirable industrial markets due to its large population and proximity to the ports of Long Beach and Los Angeles.
Some $2.6 billion in industrial deals have been completed this year in greater L.A., according to CoStar data. That's a slower pace than last year when $9.3 billion in sales were recorded.
Meanwhile, the industrial deal marks the latest acquisition for IDS, which is growing its portfolio. Last September, the company bought the 63-acre Irwindale Speedway in Irwindale for around $80 million with plans to redevelop the property into an industrial and commercial business park.
The upper San Gabriel Valley industrial market, which includes the Azusa Industrial Center, has an average rent of $19.30 per square foot, above the greater L.A. industrial average of $19.16 per square foot, according to CoStar data. The market's vacancy is 3.1%, below the greater L.A. average of 3.7%.
A representative for IDS didn't respond to an email request to comment from CoStar News.