West Rancho Dominguez Overview

Home , Rosecrans Avenue

105

105 WEST RANCHO DOMINGUEZ OVERVIEW

110

S Broadway

S Avalon Blvd S Main St

Rosecrans Ave

110

Figueroa St

S CentralAve

Alondra Blvd

COMPTON/WOODLEY AIRPORT Alondra Blvd

S Broadway Alondra Blvd

S Main St

S Avalon Blvd

S Central Ave

2 West Rancho Dominguez | Micro Market Report 105

105 Neighborhood Overview

West Rancho Dominguez is an unincorporated, census-designated territory in the South Bay of Los Angeles. It is bounded by the City of Carson to the West and Compton to the East. 110 In this book, West Rancho Dominguez is defined as the area bounded by Alondra Boulevard to the South, Figueroa Street to the West, Rosecrans Avenue to the North, and Central Avenue to the East.

Originally part of the Rancho San Pedro land grant in 1784, West Rancho Dominguez is now an industrial

S Broadway hub in the South Bay of Los Angeles. The proximity to the port and easy access to highways provides the territory’s major distribution facilities and manufacturing tenants and owner/users a solid base to serve

S Avalon Blvd S Main St Southern California.

Rosecrans Ave West Rancho Dominguez Supply Industrial/Flex Office Retail Multifamily Buildings 371 3 34 6 Avg Building Size 28,065 2,550 3,257 50,256 Inventory (SF) 10,412,152 7,650 110,721 201,025 110 Rental Rate ($/SF/Mo) $1.05 - $2.69 $1.51 Vacancy (SF) 187,947 0 8,500 2,613

Figueroa St Availability (%) 1.8% 0.0% 7.7% 1.3%

S CentralAve

Alondra Blvd

COMPTON/WOODLEY AIRPORT Alondra Blvd

S Broadway Alondra Blvd

S Main St

S Avalon Blvd

S Central Ave

West Rancho Dominguez | Micro Market Report 3 DOING BUSINESS IN UNINCORPORATED TERRITORY West Rancho Dominguez is in an unincorporated territory of Los Angeles County, meaning that there is no local municipality and the land falls under County jurisdiction. The zoning code is set by the Los Angeles County Department of Regional Planning, who also grants permits and variances. Industrial operators generally prefer unincorporated areas because they do not require a business license from Los Angeles County, unless they are subject to County health or safety regulations. Some unincorporated areas have County utilities; however, an infill location like West Rancho Dominguez has Southern California Edison as a power company and the neighboring cities of Gardena and Compton provide other services normally provided by a city. “More than 65 percent of Los Angeles County is unincorporated territory, more than 2,600 square miles.”

GREEN ZONE PROGRAM | 2021 In 2015, the Los Angeles County Board of Supervisors, the governing board for unincorporated territory, started the process of a General Plan update for all unincorporated territory, titled the Green Zones Program. This General Plan update will place restrictions on industrial uses to “enhance public health and land use compatibility.” The public comment period on the draft environmental impact report (EIR) and draft ordinance ended in February 2021, and the County is expected to vote on the ordinance in August 2021.

The ordinance will create 11 new Green Zone Districts within the unincorporated territory of the County. Each district will have new development standards and restrictions placed on properties near “sensitive uses,” specifically industrial uses that could cause harm to public health nearby schools, parks, and homes. The ordinance will require compliance for current industrial occupants within three to seven years, and new occupants may require a conditional use permit.

4 West Rancho Dominguez | Micro Market Report WEST RANCHO DOMINGUEZ INDUSTRIAL DEMAND The West Rancho Dominguez industrial market is in a prime location in the South Bay of Los Angeles with strong demand. Industrial space has seen historically low vacancies in the past several years primarily due to the expanding global economy and the proximity to the LAX/Long Beach Ports, which is the busiest seaport complex in the United States and ranked fifth in air freight volume. Due to the significant transportation volume, the market is a mix of large and small distribution centers occupied by tenants like Amazon and FedEx, manufacturing centers, and headquarters with owner/users like Sit n’ Sleep. Since the area is built out, the supply of industrial space has been relatively stable. The increases in inventory have been mainly due to institutional developers and investors, with a 112,075-square-foot project delivered to Sam’s Club in 2019 by Panattoni Development and another project is currently proposed by Rexford Industrial.

Industrial/Flex: Direct Avg Asking Rent vs Total Vacancy

Industrial/Flex: Market Rent Growth

Sources: Newmark Private Capital Group & CoStar Research

West Rancho Dominguez | Micro Market Report 5 TENANT OVERVIEW 110

Figueroa St Rosecrans Ave Rosecrans Ave

San Pedro St

Amazon

S Broadway

E Redondo Beach Blvd

110 S Main St

Figueroa St

Alondra Blvd Alondra Blvd

S Avalon Blvd

S Broadway 110

6 West Rancho Dominguez | Micro Market Report 110

Figueroa St Rosecrans Ave Rosecrans Ave

San Pedro St

Amazon

S Broadway

E Redondo Beach Blvd

110 S Main St

Figueroa St

Alondra Blvd Alondra Blvd

S Avalon Blvd

S Broadway 110

West Rancho Dominguez | Micro Market Report 7 Industrial 14300 S Main St Sit ‘n Sleep Industrial (Owner/User) 14400 S San Pedro St 207,267 SF Martin Goodman WEST RANCHO DOMINGUEZ OWNERSHIP MAP 73,528 SF Industrial Industrial 110 14600 S Main St 350 W Rosecrans Ave The Black Tux Industrial Industrial Barco Uniforms Akast Foundry, Inc 1440 S Figueroa St 50,000 SF 14439 S Avalon Blvd 50,112 SF Kong Family Trust Frontier Logistics Services Rosecrans Ave 89,491 SF Rosecrans Ave 139,674 SF

San Pedro St Industrial 14601 S Broadway St Realterm US, Inc 60,000 SF S BroadwayIndustrial Industrial 301 E Compton Blvd 335 E Compton Blvd Industrial Maya Steel Fabrications, Inc Mega Steel and Tube, Inc 15100 S San Pedro St Industrial (Owner/User) (Owner/User) Cohen Asset Management 14800 S Figueroa St 55,151 SF 68,272 SF 112,075 SF Precision Castparts Corporation (Owner/User) Industrial 285,674 SF 15200 Main St Eaton Vance Real Estate Investment Group Industrial 46,096 SF E Redondo Beach Blvd 15505-15601 S Avalon Blvd Industrial Rexford Industrial 15100 S Figueroa St 84,700 SF LBA Realty & Blackstone 103,250 SF Industrial 15225 S San Pedro St Fenton Gardena Industrial10 78,000 SF Industrial 110 15400 S Main St 15500 S Avalon Blvd Prologis S Main St Industrial Global Agri-Trade Corporation (Owner/User) 56,821 SF 245-261 E 157th St 62,482 SF Industrial Figueroa St Laurence Zwirn 15730 S Figueroa St 70,295 SF The Carson Companies 117,125 SF Industrial 15650-15700 S Avalon Blvd Rexford Industrial Alondra Blvd 173,458 SF Alondra Blvd

S Avalon Blvd Industrial Industrial 301 E Alondra Blvd 15700 S Main St Dickerman Living Trust Fontana Sierra Corporation 92,872 SF

S Broadway 193,000 SF Industrial 15913 S Main St Terreno Realty Corporation 110 114,061 SF 8 West Rancho Dominguez | Micro Market Report Industrial 14300 S Main St Sit ‘n Sleep Industrial (Owner/User) 14400 S San Pedro St 207,267 SF Martin Goodman 73,528 SF Industrial Industrial 110 14600 S Main St 350 W Rosecrans Ave The Black Tux Industrial Industrial Barco Uniforms Akast Foundry, Inc 1440 S Figueroa St 50,000 SF 14439 S Avalon Blvd 50,112 SF Kong Family Trust Frontier Logistics Services Rosecrans Ave 89,491 SF Rosecrans Ave 139,674 SF

S Avalon Blvd Industrial Industrial 301 E Alondra Blvd 15700 S Main St Dickerman Living Trust Fontana Sierra Corporation 92,872 SF

S Broadway 193,000 SF Industrial 15913 S Main St Terreno Realty Corporation 110 114,061 SF West Rancho Dominguez | Micro Market Report 9 WEST RANCHO DOMINGUEZ DEVELOPMENT MAP Recent 110 Development Project

Rosecrans Ave Rosecrans Ave

West Rancho Dominguez Development 15100 S San Pedro St Cohen Asset Management Recent 112,075 SF Due to high barriers to entry and extremely low vacancy/turnover, West S Broadway Delivered 2019 Development Project Rancho Dominguez has only seen three industrial developments since

2015 and there is only one proposed development. Although minimal, San Pedro St the development activity has been generated from major development firms like Panattoni Development and Rexford Industrial, who are capitalizing on historically low vacancy rates. 15500 S Avalon Blvd Global Agri-Trade Corporation (Owner/User) 62,482 SF Delivered 2016 E Redondo Beach Blvd

110

Development Project S Main St

Figueroa St

15505-15601 S Avalon Blvd Rexford Industrial 84,700 SF Development Site Alondra Blvd Alondra Blvd

S Avalon Blvd

S Broadway

110

10 West Rancho Dominguez | Micro Market Report Recent 110 Development Project

Rosecrans Ave Rosecrans Ave

15100 S San Pedro St Cohen Asset Management Recent 112,075 SF S Broadway Delivered 2019 Development Project

San Pedro St

15500 S Avalon Blvd Global Agri-Trade Corporation (Owner/User) 62,482 SF Delivered 2016 E Redondo Beach Blvd

110

Development Project S Main St

Figueroa St

15505-15601 S Avalon Blvd Rexford Industrial 84,700 SF Development Site Alondra Blvd Alondra Blvd

S Avalon Blvd

S Broadway

110

West Rancho Dominguez | Micro Market Report 11 RECENT ACTIVITY | SALES

Address 245-261 E 157th St 400 W Rosecrans Ave 15100 S San Pedro St City/State West Rancho Dominguez, CA West Rancho Dominguez, CA West Rancho Dominguez, CA Sale Price Unpriced $5,850,000 $37,320,000 Price/SF Unpriced $237 $333 Sale Date On Market 3/3/21 11/10/20 Building Size 70,546 24,698 112,075 Land Area (SF) 124,758 44,059 198,063 Price/SF Land Unpriced $133 $188 Percent Leased 89% 100% 100% Clear Height 18'-22' 18'-20' 32' Seller Laurence Zwirn Partner's Capital Panattoni Development Buyer To be determined Private Individual Cohen Asset Management Comments Rents are 25% below market 100% NNN leased to LA County 2019 construction and 100% NNN leased to Sam's Club

312 & 332 E Rosecrans Ave Address 15505 & 15601 S Avalon Blvd 230 W Rosecrans Ave & 14401 & 14421 S San Pedro St City/State West Rancho Dominguez, CA West Rancho Dominguez, CA West Rancho Dominguez, CA Sale Price $37,210,000 $15,500,000 $13,300,000 Price/SF $189 $250 $221 Sale Date 11/3/20 10/27/20 8/4/20 Building Size 196,999 62,077 60,115 Land Area (SF) 394,218 192,100 140,372 Price/SF Land $94 $81 $95 Percent Leased 0% 0% 100% Clear Height 17'-21' 20' 18'-24' Seller Edson's Investments Hawaiian Host, Inc. Puncho Studio Buyer CenterPoint Properties Rexford Industrial CenterPoint Properties Comments Four property portfolio sold vacant Two property portfolio sold for land value 100% leased to Home Elegance and used as a distribution center for the retailer

12 West Rancho Dominguez | Micro Market Report RECENT ACTIVITY | LEASING

Buildings in West Rancho Dominguez are primarily owned by owner/users and not investors, which explains the limited sales and leasing activity because the owner/users have been operating in the community for many years.

Address RSF Tenant

14400 S San Pedro St 73,528

15100 S San Pedro St 112,075

15902 S Main St 53,000 MAROMA GROUP

West Rancho Dominguez | Micro Market Report 13 PRIVATE CAPITAL GROUP

SEAN FULP RYAN PLUMMER Executive Managing Director Managing Director t 310-407-6596 t 310-407-6570 [email protected] [email protected] CA RE Lic. #01389064 CA RE Lic. #01765854

MARK SCHUESSLER RYAN TETRAULT Managing Director Associate t 310-201-2075 t 310-201-2062 [email protected] [email protected] CA RE Lic. #02033871 CA RE Lic. #01996711

BUYER SERVICES TRANSACTION MANAGEMENT

ANDREY MINDIRGASOV JACKIE WESTLAND Director Transaction Manager t 310-407-6597 Irvine, CA [email protected] Los Angeles, CA

ANALYTICS

JORDAN GARCIA Financial Analyst Los Angeles, CA

CORPORATE LICENSE #01355491

The broker for a purchaser of the property shall be entitled to receive a real estate commission only in the event that broker and the property’s owner execute a written commission agreement containing the manner of calculation of that commission and all conditions to its payment, and the satisfaction of those conditions. Absent a written agreement to the contrary between that broker and Newmark that broker shall not look to Newmark for payment of such a commission or any other compensation. Although all information furnished regarding property for sale, lease, or financing has been obtained from sources deemed to be reliable, that information has not been verified by Newmark and no express representation is made nor is any to be implied as to the accuracy thereof. That information is subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice and to any special conditions imposed by Newmark’s client. nmrk.com