Sares Regis Buys $36M Rreef Center

Steven Bellitti of the Diamond Bar office of Colliers Seeley reports that one of many attractions for the buyer in the deal is that each of the buildings is located on its own separate parcels, which "provides Sares Regis flexibility into the future," Bellitti says. Bellitti and Thomas Taylor, also of Colliers Seeley, represented both Sares Regis Group and seller Rreef. The class A master planned industrial park was built in the mid 80s and is 100% leased, according to Taylor, who notes that the tenant roster includes names like the Los Angeles Times, New York Frozen Foods and Modine Manufacturing. The buildings serve as headquarters, distribution centers and light manufacturing operations for these companies and others. Bellitti describes the industrial park as a high-image project strategically located adjacent to the freeway, at the intersections of the 605, 10 and 210 freeways. The location attracts users that want to be centrally located within the Greater Los Angles region. The 10 buildings are located at 13700 Live Oak Ave., 5000, 5100 and 5150 Rivergrade Rd., and 4951, 5001, 5051, 5101-5121, 5151-5161 and 5175 Commerce Dr. in Baldwin Park. The demand and occupancy for the Baldwin Park space underscore the strong industrial market in the L.A. Basin, which Colliers Seeley describes as "the tightest industrial market in the US" in its latest quarterly industrial report for the L.A. area. The Colliers Seeley report notes that the total vacancy rate, including sublet space, continued to drop, and reached 3.9% at the end of the fourth quarter of 2004, down from 4% the quarter before and from 4.5% a year before. The direct vacancy rate was only 3.3%, the lowest rate of any major market in the US, the report emphasizes. Total vacancy rates were exceptionally low in the San Gabriel Valley, just 1.2%.