This 7,500 square foot noodle manufacturing facility is located in DTLA. Sakura Noodle has occupied the concrete block building since it was built in 1980. They have a year left on their NNN lease where an investor could buy this at a 5.3% cap rate. Or a user could purchase it and ask the tenant to leave earlier.
This is a rare triple net leased investment warehouse in Downtown Los Angeles and is the only such investment in the larger industrial submarket.
The property has a fenced yard in the rear with ground level loading doors and 17′ high roof. Located in Downtown Los Angeles, the property zone is industrial, M2. There are floor drains and 400 amp power panel for food production of Japanese ramen and udon noodles.
In the past 5 years Los Angeles investors and developers have pushed forward with both under-construction and planned developments of film studios and sound stages. It made some sense given the lack of vacancy in the booming streaming years. But since the SAG-AFTRA strike all bets are off for demand for film production. See above chart showing declining demand for film production of features and TV.
We could see some of the planned projects get shelved by cautious investors, or if they do build and demand doesn’t bounce back they could get burned. Only time will tell. And even if demand rebounds that doesn’t mean it will stay in LA as inter-state competition is hot along with Canada and other countries per the Hollywood Reporter article.
Southern California has a large inventory of refrigerated industrial buildings. Cold storage operators have high cube freezer and cooler spaces while food processing companies need buildings with not only freezers and coolers but also with food production rooms that have sloped floors and floor drains for wash downs of meat, seafood, poultry, meals, or produce. These food facilities generally require a large grease trap known as a clarifier or waste interceptor.
See below available listings of food buildings for sale or sale the Los Angeles area of Southern California. The cities of LA, Vernon, Commerce, and Industry have many industrial food facilities.
I just closed a sale transaction for a 16,600 square foot food production building in the City of Paramount located next to the 710 Freeway and Alondra Blvd in Los Angeles County, California. The agreed upon price was $6,850,000. I previously had this in escrow with a high-net-worth buyer who was also a world-famous restaurant operator. However he decided at the last minute to outsource the production of his frozen food line and thus cancelled the contract while forfeiting his deposit. I immediately called another food company in my extensive industrial company contact database and they expressed interest in the facility.
Soon enough my second buyer was under contract and in escrow to purchase this facility while conducting their due diligence and obtaining SBA financing. Several weeks ago we closed the transaction.
The facility was formerly occupied by a food production company that made ready to cook bowls of frozen meals. The new company will re-certify the facility with the USDA in order to use it for meat processing of beef and poultry. Many years ago the facility was used to manufacture frozen Chinese dumplings.
See below floor plan to understand the extensive buildout of specialized food rooms like freeers, coolers, and processing room with floor drains.
Additionally the building was located in a secure business park, had dock high loading, and dedicated parking spaces. The location is between Downtown Los Angeles, Vernon, and Commerce to the north and the port of LA to the south.
An approximately 20,000 square foot concrete building with 5,200 square feet of freezer & cooler boxes is expected to come available as a listing for lease in several months. It is an industrial warehouse with cold storage and dry storage that can accommodate 10 dock high refrigerated truck trailers – this is an unusually high number of loading positions for a building of this size.
There is plenty of yard and parking space given the large 43,000 square foot land parcel. Offices with restrooms included. Located the City of Commerce near the 5 Freeway about 10 minutes from Downtown Los Angeles (DTLA) and the City of Vernon.
Ideal for refrigerated food storage and distribution. Perishable foods such as prepared meals, poultry, seafood, beef, frozen foods, produce (fruit and vegetables).
Register preliminary interest by using the contact page.
