JPMorgan Pays $176.5M for PGIM's Santa Fe Springs Industrial Campus
JPMorgan Chase has acquired the Shoemaker Commerce Center, a two-building industrial campus in Santa Fe Springs, California, from PGIM Real Estate for $176.5 million — one of the priciest Los Angeles industrial transactions recorded over the past two years, according to Green Street.
The campus at 15614–15620 Shoemaker Avenue and 15700 Shoemaker Avenue totals approximately 521,091 square feet, placing the per-square-foot price at roughly $339. The campus was fully leased at the time of sale, anchored by a beverage distributor.
Property and Transaction Details
The Shoemaker Commerce Center comprises two warehouses built in 1997 within the densely developed southeastern Los Angeles industrial corridor. Santa Fe Springs sits at the intersection of several regional transportation arteries, making it a sought-after location for large distribution operations. The campus's full occupancy provided JPMorgan with immediate, stabilized cash flow — a meaningful consideration in a market where lease-up risk has grown alongside rising vacancy rates.
At approximately $339 per square foot, the transaction price exceeds the broader Los Angeles industrial market average of $283.59 per square foot recorded in the second quarter of 2026. The premium reflects the property's scale, infill location, institutional quality and fully leased status.
Los Angeles Industrial Market Context
The acquisition arrives as the Los Angeles industrial market navigates a period of uneven conditions. Vacancy has climbed from the historically tight levels of 2021 and 2022, with figures varying by research provider. Direct vacancy in the Los Angeles industrial market stood at 6.0% in the second quarter of 2026, up from 5.6% a year earlier, while average direct asking rents declined to $1.37 per square foot per month on a triple-net basis from $1.46 a year prior. Other market trackers place vacancy in a range between 4.2% and 5.0% for the same period, reflecting differences in geographic boundaries and methodology.
Despite softer rents and elevated availability compared with prior peaks, leasing activity has shown signs of recovery. Second-quarter 2026 leasing in the Los Angeles market reached 11.0 million square feet — the strongest second quarter since 2021 — while new supply deliveries have slowed materially, with only 692,358 square feet delivered in the second quarter following 191,517 square feet in the first. That combination of improving demand and constrained new supply has supported valuations for well-located, fully leased assets even as broader market conditions remain mixed.
The average cap rate for Los Angeles industrial sales was reported at 5.7% in the second quarter of 2026.
Significance of the PGIM–JPMorgan Deal
The transaction represents a notable institutional commitment to Southern California industrial real estate at a time when some investors have pulled back from the asset class amid higher interest rates and softer tenant demand. JPMorgan's willingness to pay above the market average on a per-square-foot basis underscores the premium that large, fully leased, infill industrial campuses continue to command from institutional capital.
For PGIM Real Estate, the sale represents an exit from a stabilized asset in one of the country's most supply-constrained industrial markets.