Albertsons has put two huge Los Angeles County distribution centers up for a possible $250 million sale, in what could be “the largest industrial redevelopment and reuse opportunity in Southern California,” says real estate business Jones Lang LaSalle Inc.
Both Albertsons sites are over 1 million square feet, and include a 78-acre plot in Santa Fe Springs, CA, and a 92-acre site in El Monte, CA. These LA Country centers, along with a 54-acre site in Clackamas, OR, have been listed for sale as part of the company’s latest portfolio.
These centers have been used by both Safeway and Vons, which have been operating under Albertsons' corporate umbrella. Both Albertsons and Safeway are owned by Cerberus Capital Management since the company bought the chain to facilitate their merger in 2013.
According to Jones Lang LaSalle Inc.’s marketing materials, Safeway and Vons will be leasing back the properties in a short-term deal while the buyer completes entitlements for redevelopment.
An asking price for the three sites was not disclosed, the Los Angeles Business Journal reports, and both Albertsons and the company’s representatives Louis J. Tomaselli and Zachary P. Niles of JLL’s Irvine office have not returned a comment to the publication on the matter.
The business journal did however speak with John Hollingsworth, Executive Managing Director at Colliers International’s El Segundo office, who said typically industrial land in the El Monte area sells for an average of $30 a square foot, which would value the first property at around $120 million. He also intimated that industrial land in Santa Fe Springs sells for an average of $40 a square foot, which would value that property at roughly $136 million.
How will this potential $250 million price tag affect the company’s business? Stay tuned as the DeliMarket News team follows the story.