A Montague Street warehouse in Pacoima just delivered a hefty payday, selling for $26 million as investors continue to chase well-located industrial space in the San Fernando Valley.
The 113,500-square-foot, single-story building at 12224 Montague Street traded hands for $26,000,000, according to L.A. Business First. The publication reports that a partnership of three firms acquired the property with plans for a value-add renovation aimed at modern logistics and distribution users.
Property details
The warehouse sits on roughly 4.97 acres and offers multiple dock-high loading positions with clear heights in the mid-20s, per the property’s LoopNet listing. Built in 1979, the facility includes about 113,500 rentable square feet and heavy power capacity suited to distribution and light manufacturing tenants. The listing also touts convenient access to the 5 Freeway and other north Valley logistics corridors.
Why buyers are still interested
Los Angeles’ industrial sector has largely stabilized after the post-pandemic runup, with vacancy and leasing trends encouraging investors to zero in on well-located, upgradeable properties like this one, according to Cushman & Wakefield. That backdrop helps explain why value-add trades in the San Fernando Valley remain in demand even as financing conditions and broader economic uncertainty keep investors on their toes.
For buyers, the playbook is straightforward: upgrades that improve truck circulation, electrical capacity or tenant amenities can significantly boost net operating income once the building is repositioned.
What’s next for the site
The buyer partnership plans to renovate the property and market it to logistics and distribution tenants, L.A. Business First reports. From here, a typical deal of this size moves into permitting and leasing efforts, with the final scope of improvements shaped by tenant demand and construction budgets.
