NEWBURY PARK, CA—A private investor Wilmington Harbor Properties LP has acquired a triple-net leased industrial property in Newbury Park that received strong interest and multiple offers from other potential buyers. Located at 889 Mitchell Road and 2450 and 2456 Teller Road, the 58,825-square-foot property has three buildings and is fully leased to two tenants.
According to Grant Fulkerson, a principal at Lee & Associates L.A. North/Ventura office who represented the seller in the transaction, this is a very rare asset in Newbury Park’s industrial market because the three triple-net-leased buildings sit on separate parcels. Once the property came onto the market, the brokers received substantial activity. “There are very little investment opportunities out there in the industrial side in this market,” Fulkerson tells GlobeSt.com, adding that investors looking for 1031 exchanges have even fewer opportunities due to the limited product. Although the buyer was not looking for a 1031 exchange, several of the nearly 10 offers he received were from 1031 buyers. Lee & Associates L.A. North/Ventura office president Mike Tingus represented the seller along with Fulkerson, and Bradley Gibbons of Commercial Property Group represented the buyer.
The property has fenced and secured yards, high clearance and an onsite parking area. Auctions in Motion leases two of the building on the property, occupying a total of 48,050 square feet with five years remaining on the lease. Eddie’s Towing leases the remaining 10, 775-square-foot building with 18 months remaining on its lease. It isn’t odd that the property is fully leased and expected to stay that way. Vacancy rates in the area at the end of the first quarter hovered at a low 5.5%, and demand for industrial properties throughout Southern California remains high. That leaves investors, like the Magellan Group which recently purchased a 28-acre plot of land for $20.5 million to build a 500,000-square-foot industrial facility, plucking up the last remaining land sites for industrial development.
Wilmington Harbor Properties purchased the building for $6.25 million at a 5.7% cap rate.