POMONA, CA—A joint venture between Lincoln Property Co. and Morgan Stanley Real Estate Fund has sold the Gary Tech Center in Pomona, CA, to a private, Orange County-based investor for $16.5 million, GlobeSt.com reports exclusively. Aerospace and defense contractor Hamilton Sundstrand currently occupies the building, and has since the property was built in 1962.
This long-term tenant was one of the factors that attracted the joint venture to the property, according to Clyde Stauff, EVP at Colliers International, who represented both the buyer and the seller in the transaction. “The buyer was looking to accommodate an exchange requirement, and this property had long-term stable income from a high net worth tenant, a division of United Technologies that has occupied the building for more than 40 years,” Stauff tells GlobeSt.com. Stauff represented the sellers along with his Colliers colleagues, executive managing director Bret Hardy, managing director Rick Putnam and EVP Tony Phu. On the buying team, Voit Commercial Real Estate SVP Mike Hartel and Mike Bouma worked alongside Stauff.
The 134,500-square-foot property has four wings and is located in Pomona’s aerospace corridor. Hamilton Sundstrand still has a remaining four-year lease term, making this a relatively safe investment. However, should the tenant choose to vacate, the buyer made sure to have an exit plan. “In Pomona, there is an overlay for what they call transit-oriented development because there is a Metro Gold Line train station is immediately adjacent to the property,” says Stauff. “The City of Pomona has a master plan for future high-density residential in that area, so if the tenant were to vacate, then there is the strong possibility of the conversion of the property to high-density residential. That was important to the buyer.” The buyer has experience in both entitling land and developing it, giving them good alternative options for the space, should they need it.
Pomona is one of the prime locations for industrial properties. Late last year, GlobeSt.com reported that Rexford Industrial purchased a 365,859-square-foot industrial property in Pomona, CA, for $27.2 million. The property grew Rexford’s California portfolio to 64 properties, totaling 7.3 million square feet.