Newmark Arranges Sale of Renovated Cold Storage Warehouse in Los Angeles to W. P. Carey

May 6, 2025 9:00 AM

Newmark announces the company has arranged the sale of 15015 Valley View Avenue, a 302,850-square-foot cold storage warehouse and distribution property in Santa Fe Springs, California. Newmark Executive Managing Directors Andrew Briner, Jim Linn and Bret Hardy, Co-Head of U.S. Capital Markets Kevin Shannon, Associate Director Aaron Banks and Senior Financial Analyst Luke Easton represented the seller, a Brookfield-backed fund. The buyer was W. P. Carey, one of the largest net lease REITs, with over 1,600 properties across the U.S. and Europe.

The under-renovation property will soon offer a new, state-of-the-art refrigeration system and is fully leased to United Natural Foods, Inc. (“UNFI”) under a long-term contract, providing stable rental income from a mission-critical facility in one of the nation’s most coveted industrial markets.

“We successfully executed our business plan by repositioning this asset into a long-term leased core asset in one of the tightest industrial markets in the country,” said Joonas Partanen, Senior Vice President, Head of West Coast Operation for Brookfield Properties.

Briner added, “The buyer recognized the scarcity and intrinsic value of this product type in the Los Angeles market. Furthermore, they were able to acquire this asset at pricing significantly below replacement cost.”

W. P. Carey’s Zachary Pasanen, Managing Director, Investments said, “We’re thrilled to acquire this high-quality cold-storage asset, leased to the largest grocery distributor in North America and located in one of the top industrial markets in the country. This acquisition demonstrates how our established reputation continues to position us as the preferred buyer for sellers looking for certainty of close and timely execution – especially important in today’s environment. We appreciate the Newmark team’s collaboration throughout the process.”

The cold storage segment of industrial real estate is growing rapidly, according to Newmark Research. As of midyear 2024, cold storage inventory reached approximately 312 million square feet nationwide, with vacancy rates of just 4.4%, below industry averages of 6.6%. Development of cold storage facilities is also near an all-time high as requirements for temperature-controlled space become more common.

Los Angeles is a particularly attractive market for both cold storage operators and industrial investors more broadly. The market is home to the third-highest cold storage inventory in the nation, behind only the New York-Philadelphia metro area and Dallas. LA’s industrial vacancy, all building types—dry and cold, was 4.3% during 4Q24, the fifth lowest in the country.

15105 Valley View is situated on 16.7 acres of industrially zoned land immediately adjacent to the region’s robust freeway network, which includes Interstates 5, 605 and 105. The property provides direct access to dense population centers and critical infrastructure and is strategically positioned in the infill Mid-Counties submarket. The on-site building offers an efficient design and unmatched functionality, featuring 26’ to 35’ clear heights, excellent dock high loading and ample trailer parking. Additionally, the property offers 273,348 square feet of temperature-controlled space (90% of the property) ranging from -10 to 38 degrees.

[1] By purchase price
[2] According to Newmark Research

About W. P. Carey
W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,614 net lease properties covering approximately 177 million square feet and a portfolio of 78 self-storage operating properties as of March 31, 2025. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.
www.wpcarey.com

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended March 31, 2025, Newmark generated revenues of over $2.8 billion. As of March 31, 2025, Newmark and its business partners together operated from 165 offices with approximately 8,100 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.

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