WareSpace Buys Another Los Angeles-Area Industrial Property

WareSpace is chopping it up again with the latest acquisition in its Los Angeles County strategy.

The Maryland-based industrial developer, owner and operator purchased a 90,500-square-foot distribution building at 860 Sandhill Avenue in Carson for $23 million, or $254 per square foot, L.A. Business First reported. JTL Corporation, which had its headquarters at the property, was the seller.

The Jadian Capital-backed firm plans to divide the building into 120 spaces to serve more tenants, aligning with its preference for smaller warehouses for small businesses.

WareSpace broke into the California market in January with a purchase in Orange County and has been steadily picking up properties across Greater Los Angeles since then.

It bought a 122,000-square-foot warehouse at 2601 South Garnsey Street in Santa Ana for $31.8 million, or $260 per square foot, and is planning a conversion to about 110 tenant spaces there.

In May it purchased an 82,000-square-foot industrial property at 13711 Freeway Drive in Santa Fe Springs for $15.8 million, or $193 per square foot. The firm similarly plans to reposition the site as a flexible warehouse campus geared toward small businesses by carving the building into smaller units to serve logistics operators, contractors, e-commerce sellers and service businesses.

“Southern California is one of the most underserved regions for small businesses that need modern warehouse space,” Joseph Ely, co-founder and COO of WareSpace, said of the firm’s strategy in the region.

The Greater Los Angeles industrial market appears to be back on the upswing following a post-pandemic lull. Net absorption in the region rose to 7.7 million square feet in the second quarter, marking the strongest quarterly demand since the end of 2022, according to Colliers. Vacancy fell to 5.5 percent in the second quarter, marking the first quarter-over-quarter improvement in nearly four years.

— Chris Malone Méndez