Dunleer Acquires Class A Industrial Building in Van Nuys for $10.6M

Why It Matters

The discounted acquisition adds immediate value and diversification to Dunleer’s portfolio, while the re‑configuration flexibility lets the firm capture strong demand for industrial condos in a tight submarket. Low vacancy rates and rising owner‑user interest boost the asset’s upside potential.

Key Takeaways

• Dunleer paid $10.6M for 34,366‑sq‑ft Van Nuys industrial building.
• Property is 100% occupied with eight 20‑ft clear‑height units.
• Condo map allows reconfiguring to ten units, adding flexibility.
• North LA industrial vacancy sits at 8.7% in Q1 2024.

Pulse Analysis

Dunleer’s latest purchase underscores a growing trend among private real‑estate firms to target high‑quality, fully leased industrial assets in the Los Angeles basin. The Van Nuys building, built in 2009, offers eight clear‑height units with modern loading infrastructure, positioning it well for logistics and e‑commerce tenants. By securing the property at a discount, Dunleer not only locks in immediate cash‑flow but also gains strategic leverage through an existing condo map that permits a conversion from eight to ten units, expanding the potential revenue base.

The condo conversion flexibility is a key differentiator in a market where owner‑users increasingly seek modular, scalable spaces. Re‑configuring the layout can attract higher‑paying owner‑occupiers or allow Dunleer to retain a portion of the building as a leased investment, creating a hybrid income stream. This adaptability aligns with the firm’s broader strategy of blending multifamily and industrial holdings to diversify risk while capitalizing on the robust demand for industrial real estate driven by last‑mile delivery and regional distribution needs.

North Los Angeles remains one of the nation’s most active industrial submarkets, boasting roughly 126 million square feet of inventory but a relatively low 8.7% vacancy rate in Q1 2024, according to JLL. Such tight supply dynamics have pushed rents higher and intensified competition for premium assets. Dunleer’s acquisition not only strengthens its foothold in this lucrative corridor but also signals confidence that strategic, value‑add purchases can deliver outsized returns as the sector continues to attract institutional capital.

Deal Summary

Beverly Hills‑based real estate investment firm Dunleer purchased a 34,366‑sq‑ft Class A multi‑tenant industrial building in Van Nuys for $10.6 million in an off‑market transaction. The fully occupied property, built in 2009, offers eight units with potential to reconfigure to ten, adding strategic value to Dunleer’s portfolio.