The owner of Mall of America is no longer buying a former rocket-engine manufacturing site in Los Angeles' San Fernando Valley, opening up for sale one of the largest redevelopment sites in America's second-biggest city.
The roughly 47-acre Canoga Ave. plot is being marketed for sale again, according to marketing materials. The site, located in the master-planned neighborhood and business district, Warner Center, went under contract in 2018 to sell to Canada-based Triple Five Group for $150 million. The property has undergone many proposed uses over the years and was once pitched for Amazon's second headquarters.
A price for the property, known as the Rocketdyne site, was not listed in marketing materials. Raytheon Technologies, based in Arlington, Virginia, owns the property and did not respond to two emails requesting comment from CoStar News. Triple Five also did not respond to two emailed requests to comment from CoStar News.
Jake Flynn, communications director for Los Angeles Councilmember Bob Blumenfield, whose district includes the Rocketdyne site, said Blumenfield's office was aware of the site being marketed for sale. Flynn directed all questions regarding Triple Five to the real estate owner and investor.
The property is located in a real estate market that has seen $1.4 billion in transactions since January 2022, according to marketing materials. Notably, billionaire Stan Kroenke has bought multiple properties in the neighborhood, including a nearby office building where the developer and sports team owner plans to build the Los Angeles Rams practice facility.
Billy Walk, senior vice president of Colliers who specializes in San Fernando Valley industrial sales, said the Rocketdyne site is a major redevelopment opportunity given its size. The Rocketdyne site's sale would be among the largest sales by acreage in Los Angeles in years, according to CoStar data. The property could attract interest from developers of all major asset classes and could feature a mix of uses, including residential, retail, industrial and entertainment.
Kroenke's recent investments, too, will drive interest in the site.
"There's going to be a lot more focus on this area because of what's going on with the Rams," Walk said.
The Rocketdyne site, though, has been plagued with contamination problems for decades. In August 2022, a plume of contaminated groundwater at the site spread "nearly half a mile north and east of the former Rocketdyne property," according to the Los Angeles Daily News. The groundwater is not being used as drinking water, according to the report.
A representative for the Los Angeles Regional Water Quality Control Board did not immediately respond to an emailed request to comment from CoStar News.
For the Record
Realty Advisory Group is marketing the Rocketdyne site for sale.