Former Thrifty Facility to Become Mini-Warehouses

Owners of the former Thrifty Drug Stores warehouse near Baldwin Hills have divided it into more than 1,000 mini-warehouses, creating one of the nation’s largest such facilities.

Developer Ezralow Co. considered converting the 380,000-square-foot complex built in the 1960s at Rodeo Road and La Brea Avenue into a mini-warehouse facility when the company acquired the property about two years ago, said Chief Executive Bryan Ezralow. But the Calabasas company instead leased it to HomeGrocer.com grocery delivery service for use as a distribution center.

After rival Webvan Group acquired HomeGrocer.com last year, Webvan executives decided not to occupy the property and sought a subtenant.

But now that Webvan’s assets are being liquidated under U.S. Bankruptcy Court supervision, Ezralow hooked up with San Diego-based Price Enterprises Inc. affiliate Price Self Storage.

The Ezralow group, which already has a portfolio of smaller mini-warehouse facilities, formed a venture with the Price group to perform a $30-million conversion of the site, Ezralow said. Price Self Storage will manage and market the facility.

Ezralow said interest from renters willing to pay an average of $1.50 per square foot per month has been strong and illustrates pent-up demand for self-storage in the region.

His company and Price Self Storage are discussing other potential developments.

Self-storage real estate seems to be holding up in spite of the slowing economy.

Glendale-based Public Storage Inc. President Harvey Lenkin recently told Wall Street real estate analysts that the slowdown hasn’t had much effect on his company.

On a “same-store” basis compared with the same period last year, net operating income at Public Storage’s properties was up 11.6%.