CapRock Brings Investment Full Cycle in One Year

Southern California industrial investor and developer CapRock Partners has brought a recent investment in Central Los Angeles full cycle in a year. The investor purchased the property, located at 5331 and 5333 Slauson Avenue, last year with a value-add business plan and an intention of holding the property; however, the existing tenant offered to purchase the property for an undisclosed amount. The short-hold and offer, however, serve as evidence of the strong industrial demand and need for space, particularly in the Central L.A. submarket.

“CapRock Partners is a flexible real estate investor and if an opportunity to sell an asset before the designated hold period emerges, we are always willing to consider it,” Taylor Arnett, VP of acquisitions at CapRock Partners, tells GlobeSt.com. “The tenant at 5331 and 5333 Slauson Avenue in Commerce, who has already occupied the property for several years, presented an offer to CapRock that made sense for both parties, where the tenant could own the property and secure its real estate long term, and CapRock could exit the investment with a profit.”

Initially, CapRock planned to divide the 97,000-square-foot, 4.32-acre property into two smaller buildings. However, Arnett says that CapRock liked the flexibility and options the property provided, and ultimately, that is what resulted in the quick success of the investment. “One of the attractive aspects of this deal though was the flexibility it provided, and we knew demand was strong for the property as a single building as well,” he says. “Our vision was to take advantage of the premium rents and/or owner-user sale prices for smaller units in the Commerce submarket once renovations were completed, but when the tenant presented an alternative, our team was happy to consider an option that was beneficial for all.”