Marcus & Millichap is pleased to present the opportunity to acquire the property located at 651 Arroyo Street in San Fernando, California. The subject property consists of approximately 23,660 square feet of warehouse space and is situated on 0.79 acres of M2-zoned land. The multi-tenant asset features a clear height of 22’, five grade-level doors, three-phase power with 1200 amps, and a fully paved and gated concrete yard. At close of escrow, the front unit (14,540 SF) will be delivered with a brand-new three-year leaseback, while the rear unit (9,120 SF) is fully leased through 2027. This offering presents an attractive opportunity for investors seeking immediate, stabilized income with minimal management responsibilities.

The leaseback will be to Harout’s BMW & MBZ Auto Parts, a nationally recognized supplier of new and used parts for BMW and Mercedes-Benz vehicles. Established in 1983, Harout’s operates multiple locations and has built a long-standing reputation as one of the largest and most trusted parts providers in Southern California, with distribution capabilities that reach across the U.S.

Located in the City of San Fernando, the property resides outside of the City of Los Angeles Municipality and zoning restrictions, and this is exempt from Measure ULA (Los Angeles Mansion Tax). Positioned outside the City of Los Angeles, the property resides in the East San Fernando Valley submarket, one of the region’s largest industrial hubs, encompassing 55.1 million square feet of space. As of Q4 2024, the submarket boasts an impressively low vacancy rate of 3.6%, significantly outperforming the 6.1% vacancy rate in the Greater Los Angeles market. While annual rent growth has slowed to 1.3% over the trailing 12 months, rents in the area remain aligned with the long-term growth trends, supported by staggering double-digit growth over the past five years. Industrial rents in this submarket, particularly for smaller industrial spaces, can reach up to $30/SF, with older, larger spaces typically ranging from the high teens to $20/SF. The submarket has experienced modest industrial development, ensuring that vacancies and rents remain stable due to the limited new supply (CoStar).