LOS ANGELES—One of the largest San Gabriel Valley industrial transactions of the year has just closed in the City of Industry. AFL-CIO Building Investment Trust purchased a fully leased 168,000-square-foot industrial property for $29 million, representing a 4.45% year 1 cap rate, from CT Realty Partners. Investors were willing to pay for the asset, illustrating the demand for infill industrial product.
“This transaction reflects the great importance of infill markets especially to ecommerce tenants,” Barbara Emmons, vice chairman at CBRE, tells GlobeSt.com. “This space is leased to an ecommerce company through 2021. It validates that the majority of new industrial users coming into this market are Internet-related operators. Another trend this transaction reflects is that investors will pay up for Class A space. Again, the need for infill locations close to population centers and the fact that new high-end product is rare in this market, is pushing prices for this type of industrial space.” Emmons marketed the property on behalf of the seller, along with Darla Longo of CBRE.
This is both a great time to sell and a great time to buy because of the demand from both investors and tenants, according to Emmons. The property is fully leased through 2021 to an ecommerce company, and the market has a sub 2% vacancy rate. This made the property a great opportunity for the buyer, especially in a market where few properties like this trade hands. “It is difficult to find new space in the San Gabriel market. Most of the buildings are older and functionally obsolete. Plus, add the extremely low vacancy rate into the mix and you are looking at a very safe, appreciating investment,” says Emmons, adding, “Only a few properties tend to trade in the San Gabriel Valley area as many sites are either owner-user occupied or are owned by one big landlord, such as Majestic Realty. It is rare for a state-of-the-art building to sell in this market.”
Because of the rarity of quality assets, the property received ample interest from investors, although Emmons doesn't say exactly how many offers she received. “We received multiple offers from pension funds, real estate investments trusts and a few private investors,” she says. “Buyers were attracted to the new state-of the art features and location. In infill markets new facilities such as 13110 Louden Lane are quite rare. Often you are looking at older, refurbished product. So this building was quite hotly pursued by a multitude of investors.”
The property is located at 13110 Louden Lane in the City of Industry, and it has access to the 605, the 10 and the 60 freeways.
LOS ANGELES—One of the largest San Gabriel Valley industrial transactions of the year has just closed in the City of Industry. AFL-CIO Building Investment Trust purchased a fully leased 168,000-square-foot industrial property for $29 million, representing a 4.45% year 1 cap rate, from CT Realty Partners. Investors were willing to pay for the asset, illustrating the demand for infill industrial product.
“This transaction reflects the great importance of infill markets especially to ecommerce tenants,” Barbara Emmons, vice chairman at CBRE, tells GlobeSt.com. “This space is leased to an ecommerce company through 2021. It validates that the majority of new industrial users coming into this market are Internet-related operators. Another trend this transaction reflects is that investors will pay up for Class A space. Again, the need for infill locations close to population centers and the fact that new high-end product is rare in this market, is pushing prices for this type of industrial space.” Emmons marketed the property on behalf of the seller, along with Darla Longo of CBRE.
This is both a great time to sell and a great time to buy because of the demand from both investors and tenants, according to Emmons. The property is fully leased through 2021 to an ecommerce company, and the market has a sub 2% vacancy rate. This made the property a great opportunity for the buyer, especially in a market where few properties like this trade hands. “It is difficult to find new space in the San Gabriel market. Most of the buildings are older and functionally obsolete. Plus, add the extremely low vacancy rate into the mix and you are looking at a very safe, appreciating investment,” says Emmons, adding, “Only a few properties tend to trade in the San Gabriel Valley area as many sites are either owner-user occupied or are owned by one big landlord, such as Majestic Realty. It is rare for a state-of-the-art building to sell in this market.”
Because of the rarity of quality assets, the property received ample interest from investors, although Emmons doesn't say exactly how many offers she received. “We received multiple offers from pension funds, real estate investments trusts and a few private investors,” she says. “Buyers were attracted to the new state-of the art features and location. In infill markets new facilities such as 13110 Louden Lane are quite rare. Often you are looking at older, refurbished product. So this building was quite hotly pursued by a multitude of investors.”
The property is located at 13110 Louden Lane in the City of Industry, and it has access to the 605, the 10 and the 60 freeways.
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