It's an old long dead directory of blogs in LA area. The question is, why did it sell for so much? Pagerank 4 and 65000 backlinks or so can possibly be worth it? Domain itself? Old fame?
Without spending time to check backlinks and PR...I would say a bunch of that price has to do with brandability. I could see a lot of ways to create a brand around a domain like that besides the way the old site did.
La blogs as in a French chi chi sorta name. LA Blogs a blog about LA. La Blogs with the initials LA being part of the name of the blogger.
If you spend time building a niche it will sell in time. So often people allow crap into their directory. In this case, it is also a good domain name.
Maybe lack of serious competition in the niche along with customer/visitor interest? That would make it worth the money.
It all depends on what the new buyer wants to do with it. Maybe she wants to start a large scale blog platform for LA residents... Or like the other responder said maybe he is looking to start a website on "Lab Logs"