CITY OF INDUSTRY, CA—Overton Moore Properties has sold two new industrial developments located in the Don Julian Business Center for a combined $12 million. The two separate buyers are an unnamed private investor and Maxfield Seafood.
Maxfield Seafood purchased the larger, 40,548-square-foot property, located at 418 S. 9th Ave. in the City of Industry. It purchased the property for $6 million, or $147.97 per square foot. The private investor purchased the only slightly smaller, 38,995-square-foor building, located at 428 S. 9th Ave. in the City of Industry, for $6.2 million, or $158.68 per square foot. Both buildings are class-A facilities.
Although this particular submarket is in high demand from industrial users, activity on the property was slow until OMP began construction. “That’s very typical for a speculative project; however, once the pads were poured and walls were tilted activity was very good. We had both buildings pre-committed,” Cushman & Wakefield senior director Erik Larson, tells GlobeSt.com. Larson represented the seller, OMP, and Maxfield Seafood in the transactions along with his Cushman & Wakefield colleagues executive director John Minervini, senior director Robin Dodson and associate director Chris Tolles. Re/Max Commercial broker Lorinda Chou represented the second buyer, a private investor.
The submarket has a limited supply with a low vacancy rate of 2.9%. OMP began building the properties speculatively after acquiring the land in May 2012, but had entered escrow on the property before completing construction in June of this year. “Maxfield Seafood was looking for new construction and this project was the only option available to them in the City of Industry,” says Larson. “Being a seafood distributor, the buyer is going to invest additional capital to build out freezer/cooler throughout the building.”
This is Larson’s second sale in the submarket this month. He and his Cushman colleagues also represented CT Realty in the purchase of a 325,800-square-foot facility in the City of Industry, which traded hand for $21.3 million.