JPMorgan Chase has paid $176.5 million for a two-warehouse industrial campus in Santa Fe Springs, snapping up a fully-leased property anchored by a beverage distributor even as other institutional players retreat from Southern California's industrial market. The purchase, made from PGIM, works out to roughly $340 per square foot and ranks among the priciest Los Angeles industrial deals of the past couple of years, according to Green Street.
According to The Real Deal, the campus spans addresses from 15614 to 15620 and 15700 Shoemaker Avenue in southeastern Los Angeles County. Los Angeles County records confirm the transaction and name JPMorgan and PGIM executives, though neither company responded to requests for comment. The Los Angeles Business Journal reported that the campus totals 521,091 square feet and was built in 1997.
Breakthru's Record Lease Anchors the Deal
Breakthru's Record Lease Anchors the Deal Breakthru Beverage, a beer, wine and spirits distributor, occupies the entire campus under a lease that runs for another nine years, per The Real Deal. The station's earlier reporting shows Breakthru signed the full-campus lease in Q3 2025 after previous tenant VF Outdoors vacated the facility, a 119.5-month term that the trade publication says achieved the highest total gross consideration of any lease transaction in Mid-Counties industrial market history — a term length that exceeded regional averages for new leases by 83.8%. The lease earned a nomination for Industrial Lease of the Year from local commercial real estate awards earlier this year.
Why Santa Fe Springs Keeps Outperforming
Santa Fe Springs sits at the intersection of Interstate 5, Interstate 605 and State Route 91, roughly 15 miles from Downtown LA and 20 to 25 miles from the Ports of Los Angeles and Long Beach, according to Lee & Associates. The city's roughly 38 million square feet of industrial inventory functions primarily as a mid-bay staging and final-mile distribution hub rather than a mega-distribution market, and its industrial-first municipal planning philosophy has resisted residential rezoning pressure.
That positioning helps explain the submarket's appeal. In the first quarter, Santa Fe Springs posted a vacancy rate of 3.2%, per Lee & Associates; Los Angeles County's overall direct industrial vacancy rate was 6.0% in the second quarter, per Kidder Mathews. Countywide direct vacancy climbed from 5.6% in the second quarter of 2025 to that 6.0% mark a year later.
Comparable Deals Show a Wide Pricing Range
Los Angeles County industrial asking rents averaged $1.37 per square foot per month NNN in the second quarter, a 6.2% year-over-year decline, according to Kidder Mathews. Landlords across the county now face total availability rates of 8.2%.
A South Bay property sold for $32.5 million last quarter at around $800 per square foot, according to Kidder Mathews, while Hackman Capital Partners sold an El Segundo flex building for $27 million at $480 per square foot, and a San Gabriel Valley property sold for $43 million at around $445 per square foot.
Rexford's Billion-Dollar Retreat
The Shoemaker Avenue sale arrives as Rexford Industrial moves in the opposite direction. The REIT recently closed the sale of an industrial portfolio worth more than $1 billion, encompassing 22 properties totaling 5 million square feet, as part of a broader $2 billion sell-off target, The Real Deal reported. Rexford's Laura Clark told the outlet in May that the company has no acquisitions in its pipeline as it watches the Southern California industrial market, describing the current phase as a correction cycle.
Fast-fashion distributor Fashion Nova expanded its Santa Fe Springs footprint in mid-2026, signing a 132,888-square-foot lease at Clarion Partners' Heritage Springs Business Park that boosted its local warehouse capacity by roughly one-third.
