465,000 SF at Conejo Trades for $34M

THOUSAND OAKS, CA-Investment group Palisades Associates of Santa Monica has acquired 465,000 sf of industrial buildings at the 100-acre Conejo Spectrum from IDS Real Estate Group for $34 million, according to IDS. Palisades Associates acquired two substantially leased buildings at 1445 and 1465 Lawrence Drive from On Royal Oaks LLC, an IDS client, according to Rob Fuelling, director of marketing and Dan Sibson, project principal for Los Angeles-based IDS.The buildings that Palisades bought are approximately 75% leased, with a tenant roster that includes Baxter Healthcare, Teradyne, and Alcatel. The sale was brokered by Scott Heaton and Neil Mishurda in the Commerce office of CB Richard Ellis' Private Client Group, along with Ken Ashen and Nick Gregg of CBRE's Sherman Oaks office.Fuelling and Sibson were involved in the development, marketing and management of the buildings and the overall Conejo Spectrum development. Fuelling notes that the buildings include a newly constructed 122,000-sf facility and a 343,000-sf structure that IDS rehabilitated.The acquisition by Palisades completes the IDS value-added play and still provides upside potential for the buyer through future lease-up, according to Fuelling and Sibson. They point out that leasing in the Conejo market is very active and there is considerable interest in the remaining vacant space.The sale to Palisades follows the sale by IDS of two parcels at the Conejo Spectrum totaling 15 acres and comprising 160,000 sf of office/R&D space to San Francisco-based Fowler Property Acquisitions LLC last month for more than $15 million. The Conejo Spectrum, located at Lawrence Drive and Rancho Conejo Boulevard just north of the Ventura (101) Freeway, was formerly occupied by aerospace and defense contractor Northrop Grumman. IDS rehabilitated some 500,000 sf of space at the site and constructed nearly 350,000 sf of new space.