SANTA FE SPRINGS, CA-Tenants and buyers have closed on more than544,000 of industrial deals here and elsewhere in the L.A. Basinthat are valued at an aggregate of more than $26 million. In thelargest of the leases, a maker of a variety of consumer goods, athird-party maker of a variety of consumer goods, Alticor/AccessBusiness Group of Ada, MI, has inked a lease for a155,484-square-foot manufacturing, assembly and distributionfacility at the 5.4 million-square-foot Golden Springs BusinessCenter.

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The Alticor building is at 12825 Leffingwell, where the companysigned a seven-year lease valued at more than $7 million, accordingto executive vice president Clyde Stauff of the Irvine office ofColliers International. Stauff represented landlord Golden SpringsDevelopment Co. of Santa Fe Springs along with EVP Stephen Calhounof Colliers' Commerce office. Stauff says that the Golden Springslocation is ideal for the tenant because it is a short distancefrom Alticor's existing Buena Park operation and offers very lowcommon area maintenance charges. The tenant was represented by PaulSablock and Greg Matter of Jones Lang La Salle.

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The new Alticor facilility is in the Mid-Counties industrialmarket, also sometimes referred to as the Mid-Cities submarket,which includes a number of cities in Los Angeles and OrangeCounties. The Mid-Counties industrial market performed surprisinglywell in the second quarter, according to the latest Colliers marketreport, which noted that, for the first time in over two and a halfyears, the Mid Counties market posted positive net absorption of171,000 square feet. "This is a surprise turnaround as the regionshed 1.3 million square feet in the previous quarter," the Colliersreport said. Vacancy rates for the Mid Counties industrial marketfell 10 basis points to 6.3% for the quarter, down from 6.4% lastquarter yet up from the 3.1% reported one year ago.

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In another Santa Fe Springs lease, Voit Real Estate Servicesreports that Distinctive Industries Inc. signed for 43,000 squarefeet in a $2.2 million deal at 9419 Ann St. The tenant wasrepresented by Brian McLoughlin of Voit's Anaheim Metro office andthe landlord, Durabilt Properties, was represented by CameronDriscoll and Luke McDaniel of the Anaheim Metro office.

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In the City of Industry, Lee & Associates reports that anundisclosed buyer acquired an 81,250 square-foot industrialproperty at 20465 Walnut Dr. from Hager Pacific Properties for$6.59 million. The buyer was represented by Adam Dzierzynski andDennis Keane of Lee’s City of Industry office. Hager Pacific wasrepresented by Jack Cline and Peter Bacci of Lee Los Angeles, alongwith Kent Stalwick of CB Richard Ellis.

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According to Dzierzynski, the buyer was searching for asimilar-sized building to one being leased in the City of Industry.Dzierzynski said a sale like this is rare in the City of Industry,where buildings in this size and price range aren’t on the marketvery often.

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In another Lee deal, in Ontario, a Los Angeles-based shoe salesand manufacturing company called Cels Enterprises Inc. bought a264,717-square-foot industrial facility at 1251 Rockefeller Ave.for $10.7 million. Cels’s decision to obtain the property was "verymuch value-driven,” according to Jeff Smith of the Lee &Associates Ontario office, who represented the buyer along withLee's John Seoane.

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Cels intends to use the 23-year-old industrial facility as itsnational distribution center. The location of the property is idealfor Cels because the company conducts a large portion of itsbusiness with the Pacific Rim, according to Smith. He notes thatthe property not only met the buyer's physical and operationalrequirements but also offered potential value with its foreigntrade zone.

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Cels acquired the property from Arrow Electronics, which wasrepresented by the Ontario and New York offices of CB RichardEllis. Smith says the sale might be a sign of a thaw in themarketplace. “This building marks the low point for user sales oflarge facility space in the market’s West end,” he said. “Activity,in general, seems to be moving in a positive direction in thisarea, with expectation for price stability at a minimum with theprobability of growth in size-specific subcategories.”

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