Boston Buyer Pays $16M for 108,000 SF

"San Gabriel Valley office buildings haven't always been places where institutions put their capital, but TA understands that market, has property there, likes it, and knows it can make money there," Shannon tells GlobeSt.com. Besides Shannon, the Grubb & Ellis team on the deal included Scott Schumacher, Michael Moore and Paul Perkins of the South Bay office, along with Jim Wynne and Amy McNamara of the firm's San Gabriel Valley office. The team represented the buyer and the seller.

The two-story, concrete tilt-up building at 801 Corporate Center Drive was 97% leased at the time of sale. The property, which was built in 1985, was sold by Asset Management Consultants of Mission Hills. The low-rise office building is part of a 50-acre master-planned office campus referred to as University Corporate Center, where the tenants include KB Homes, which occupies 66% of the project, along with SG/Pomona Regional Center, US Health Works and DeVry Technical Institute. One of the attractions for buyers, according to the Grubb & Ellis team, was the building's low percentage of lease roll-over in the near future. None of the leases roll over in the next two years, and only slightly less than 16% of the space comes due for renewal in the next four years.

The building is part of a Pomona/Diamond Bar submarket where the vacancy rate measured just under 9.6% at the end of the first quarter, with no new speculative office construction on the boards. Besides having one of the lowest vacancy rates of any major market area in Los Angeles County, according to a recent Grubb & Ellis report, the area is unlikely to face any surge of new construction because of the scarcity of well-located land parcels for development.