RANCHO DOMINGUEZ, CA-Creating a new identity for two nondescript industrial buildings helped to sell them for a premium price of $5.35 million, according to Leonard & Ohren, which brokered the deal. Britten Shuford, a principal with Leonard & Ohren, explains that the brokerage marketed the two older manufacturing buildings as the Susana Properties to create an identity for the two buildings, which total 72,784 sf.
Leonard & Ohren represented the seller, First Industrial Realty Trust. A locally based 1031 exchange buyer acquired the buildings, which First Industrial had owned since 2003. The buildings are at 18031 Susana Rd. and 3131 Harcourt St.
Shuford says that, in addition to offering a 1031 exchange property, the buildings appealed to the buyer because of their location in the South Bay industrial market, where the vacancy rate stands at a historic low of 2.8%. Additionally, prices for industrial space have been rising because of competition from aggressive residential developers, who are acquiring industrial properties with the intent of rezoning, Shuford points out.
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