North L.A. Industrial Land Tightens

LOS ANGELES—Sares Regis has acquired the last remaining development parcel at Conejo Spectrum Business Park, the first large-scale industrial project in the market in more than a decade. Sares plans to build nine speculative industrial properties on the 29-acre site totaling 500,000 square feet. The sales price of this off-market deal was not disclosed, but this was a coveted plot of land. The Conejo Valley market has a sub 1% vacancy rate and limited land for new development.

““It is very difficult to find a site this large anywhere in North Los Angeles, and the opportunity to develop and own 500,000 square feet of brand new industrial product is extremely challenging to accumulate in this market,” John DeGrinis, a senior executive VP at Colliers International, tells GlobeSt.com. “With such little land available, there has been a lack of new construction over the past decade. The high end, modern elements that Sares Regis is incorporating into the design of the project will give them a significant long-term competitive advantage over existing industrial product in the region.” DeGrinis represented the buyer in the deal along with his colleagues Patrick DuRoss and Jeff Abraham.

This site was rare not only because of the limited development sites left, but also because the seller had not intended to sell the site. “Most thought that the former owner would never sell it.  Our team was able to structure the transaction off-market,” explains DeGrinis. If it had been brought to market, the site likely would have attracted ample attention from investors. The market has a laundry list of qualities that make it a great place for business. DeGrinis lists the major attributes as: “a beautiful area; has high barriers to entry due to lack of land; access to business owners who live in the area; a talented labor pool; access to amenities; and is proximate to Los Angeles, Santa Barbara and rest of Southern California.”

Sares plans to build a state-of-the-art facility with secured and fenced yards, 28-to- 30-foot ceiling clearances, an ample number of dock-high loading doors, high-image office space, and ESFR-certified sprinkler systems. “Showers will even be including into the office design to support the active lifestyle of the employees who want to bike or run in the scenic area that surrounds the project,” adds DeGrinis. “The buildings will range in size from 37,000 square feet to 100,000 square feet, and they are scheduled to deliver in the fourth quarter of the year.”

In addition to handling the sale, Colliers will also oversee leasing at the property. Because of the quality of the buildings and the high demand, DeGrinis says the firm is targeting a variety of users. “We have a really diverse group of tenants in our market and the buildings were designed to accommodate a variety of industries,” he says, adding that e-commerce and logistics companies, which are active in the market, will be attracted to the loading, clear height, and ESFR sprinklers, while manufacturing companies, will be attracted to the office features at each property. “Tenants will come from within the Conejo Valley, the San Fernando Valley and other parts of Ventura County,” says DeGrinis. “Many business owners who live in the Conejo Valley have been commuting to other parts of the San Fernando Valley and Southern California region. They will find this project to be a unique opportunity to find the perfect building close to home.”

LOS ANGELES—Sares Regis has acquired the last remaining development parcel at Conejo Spectrum Business Park, the first large-scale industrial project in the market in more than a decade. Sares plans to build nine speculative industrial properties on the 29-acre site totaling 500,000 square feet. The sales price of this off-market deal was not disclosed, but this was a coveted plot of land. The Conejo Valley market has a sub 1% vacancy rate and limited land for new development.

““It is very difficult to find a site this large anywhere in North Los Angeles, and the opportunity to develop and own 500,000 square feet of brand new industrial product is extremely challenging to accumulate in this market,” John DeGrinis, a senior executive VP at Colliers International, tells GlobeSt.com. “With such little land available, there has been a lack of new construction over the past decade. The high end, modern elements that Sares Regis is incorporating into the design of the project will give them a significant long-term competitive advantage over existing industrial product in the region.” DeGrinis represented the buyer in the deal along with his colleagues Patrick DuRoss and Jeff Abraham.

This site was rare not only because of the limited development sites left, but also because the seller had not intended to sell the site. “Most thought that the former owner would never sell it.  Our team was able to structure the transaction off-market,” explains DeGrinis. If it had been brought to market, the site likely would have attracted ample attention from investors. The market has a laundry list of qualities that make it a great place for business. DeGrinis lists the major attributes as: “a beautiful area; has high barriers to entry due to lack of land; access to business owners who live in the area; a talented labor pool; access to amenities; and is proximate to Los Angeles, Santa Barbara and rest of Southern California.”

Sares plans to build a state-of-the-art facility with secured and fenced yards, 28-to- 30-foot ceiling clearances, an ample number of dock-high loading doors, high-image office space, and ESFR-certified sprinkler systems. “Showers will even be including into the office design to support the active lifestyle of the employees who want to bike or run in the scenic area that surrounds the project,” adds DeGrinis. “The buildings will range in size from 37,000 square feet to 100,000 square feet, and they are scheduled to deliver in the fourth quarter of the year.”

In addition to handling the sale, Colliers will also oversee leasing at the property. Because of the quality of the buildings and the high demand, DeGrinis says the firm is targeting a variety of users. “We have a really diverse group of tenants in our market and the buildings were designed to accommodate a variety of industries,” he says, adding that e-commerce and logistics companies, which are active in the market, will be attracted to the loading, clear height, and ESFR sprinklers, while manufacturing companies, will be attracted to the office features at each property. “Tenants will come from within the Conejo Valley, the San Fernando Valley and other parts of Ventura County,” says DeGrinis. “Many business owners who live in the Conejo Valley have been commuting to other parts of the San Fernando Valley and Southern California region. They will find this project to be a unique opportunity to find the perfect building close to home.”