Investors Will Pay for Class-A Industrial

Barbara Emmons is a vice chairman at CBRE.

LOS ANGELES—One of the largest San Gabriel Valley industrial transactions of the year has just closed in the City of Industry. AFL-CIO Building Investment Trust purchased a fully leased 168,000-square-foot industrial property for $29 million, representing a 4.45% year 1 cap rate, from CT Realty Partners. Investors were willing to pay for the asset, illustrating the demand for infill industrial product.

“This transaction reflects the great importance of infill markets especially to ecommerce tenants,” Barbara Emmons, vice chairman at CBRE, tells GlobeSt.com. “This space is leased to an ecommerce company through 2021. It validates that the majority of new industrial users coming into this market are Internet-related operators.  Another trend this transaction reflects is that investors will pay up for Class A space. Again, the need for infill locations close to population centers and the fact that new high-end product is rare in this market, is pushing prices for this type of industrial space.” Emmons marketed the property on behalf of the seller, along with Darla Longo of CBRE.