McKinley Packaging has signed a full-building lease with Prologis for a 102,516-square-foot industrial facility in Santa Fe Springs, Calif. The paper and packaging product manufacturer will use the space to provide support to its main plant in an adjacent property.
A Colliers team comprised of Executive Vice Presidents Christopher Sheehan and Mike Foley and Vice President Connor Reeves represented both parties in the leasing negotiations.
According to CommercialEdge, the property last traded in 1995, when Prologis acquired it for $4.8 million. The industrial REIT owns approximately 9.5 million square feet of assets in the surrounding Gateway Cities submarket, CommercialEdge shows.
The warehouse at 13930-13950 Mica St. features 22- to 30-foot clearance heights, a fenced yard, one grade-level and 22 dock-high doors and is serviced by an active BNSF rail spur. The building also includes a 9,712-square-foot office component, three rail doors, HVAC and 200 parking spaces. It was constructed in 1980. The property is within a 12-mile radius of Interstates 5, 605 and 710, less than 25 miles from the ports of Long Beach and Los Angeles.
McKinley, a subsidiary of Bio Pappel, will use its new location to expand its regional distribution capabilities. The company operates four box plants and three sheet and foam plants across California, Georgia, Indiana, Texas and in Baja California, Mexico.
SoCal’s industrial boom continues
The Greater Los Angeles industrial market continues to shine, with developers pouring money into the little land that is still available for development. In April, Prologis and Stirling Development announced plans for an 819,964-square-foot build-to-suit project in the Inland Empire. The development, designed to achieve LEED certification, is slated for completion in 2022.
The metro’s industrial rents grew 7.3 percent year-over-year as of April, a CommercialEdge report shows, and activity across Southern California has not been deterred despite some of the tightest vacancies in the nation. Los Angeles’ and Orange County’s vacancies hit a respective 4 percent and 3.7 percent as of April, with the Inland Empire registering at a record all-time low of 2 percent.