LAX to Purchase Tiny (but Pricey) Adjacent Lot

LAX's operator, Los Angeles World Airports, is said to be in negotiations to purchase a 21-acre parking lot adjacent to the Southwest Airlines terminal on the east end of the airport, valued at over $100 million. The property, called Park One, is owned by AMB Properties, a San Francisco-based property manager. At over $25/car/day, the lot is said to generate several millions of dollars per annum. It is set to be the largest commercial sale in LA County this year.

For purchases over $150,000, the agency is required to gain permission from the board of commissioners and from the LA city council. While their intended use of the site has not been made public, the agency claims the lot will not factor into their multibillion-dollar plans for renovation and expansion. In a recession economy, parking lots prove a very stable investment, as retail and other tenants will tend to fall back on their payments.

Prior to its parking lot conversion in the 1990s, the spot was an industrial warehouse space that was home to an aerospace manufacturer during World War II. Important then for its proximity to the airport and the rest of the aerospace industry, the lot on the corner of Sepulveda and Century Blvds is exponentially more so today, at the gateway to the largest passenger and cargo airport on the Pacific. Unfortunately LAX received the distinction last week of being ranked the 'nation's worst airport' by Dwell Magazine. Maybe that money can go into the alleged rehab of the airport - lord knows they won't be getting any money from the government anytime soon.