The three-building Coral Tree Business Center sits on an 8.6-acre site at the southwest corner of 223rd and Lucerne streets, just south of the San Diego (405) Freeway. The acquisition of the 16-year-old center, which is 94% leased, brings the total of the Koll Co.'s multi-tenant, light industrial portfolio to more than 1.3 million sf.

The Coral Tree center consists of one two-story buildings and two single-story structures, with industrial units and office suites ranging from 1,200 sf to 9,400 sf. The buildings feature tilt-up concrete construction and tinted glass windows with anodized metal framing.

Columbia Industrial West was represented in the transaction by Kevin Shannon, Scott Schumacher, Steve Bohannon and Michael Moore of the Grubb & Ellis South Bay office. The Koll Co. represented itself. Financing was provided by Fleet National Bank via Koll Co.'s credit line.

Jerry Yahr, Koll's managing principal, says the new acquisition is an example of the properties the company is targeting in its acquisition plan, which focuses on multi-tenant, light industrial properties. The company is seeking both single assets and portfolios in Southern California and looking for industrial land for infill development and value-added acquisitions throughout the Western US.

Yahr says Koll was drawn to the Coral Tree Business Center by its location in the South Bay industrial marketplace, immediate freeway access and proximity to the Ports of Long Beach and Los Angeles as well as both LAX (Los Angeles International) and Long Beach Airport. He notes that the property has historically maintained a low vacancy rate and that its position in a highly developed submarket limits the likelihood of any new construction to compete against it.

The Koll Co. will manage and lease the center itself. The firm recently moved property management and leasing operations in-house after using a third-party service firm for the last few years.