Good afternoon -Activities levels continue to push through summer and Labor Day. We’re excited to be doing great work with great teams in the marketplace. A few recent closings of note that are illustrative of the market are below. The primary takeaway is that yesterday’s rate of $0.85 NNN PSF monthly / $10.20 NNN PSF annual, of the last 24 months, has become the $1.20 NNN PSF monthly / $14.40 NNN PSF annual rate of today and higher. We are finding deals but it is taking a well-coordinated and timed effort.
1. The Six Pack Portfolio + Meyer Canyon
Here we were able to help a long-standing client reposition their portfolio of 7 free-standing Southern California industrial properties and 1031 exchange them into properties in business-friendly states that are absolute triple net, with 10-20 year leases at a 6% cap rate or higher, with fixed 10% rental increases every 5 years. Our team was pleased to be able to smoothly transact with the institutional investors in a tumultuous marketplace, achieve well beyond expectations, and then be able to cull through 250 different investments across the country and secure the right ones.
2. 17466 Daimler, Irvine – BLT Enterprises
Here we were able to help a very successful family investment firm increase the value of their recent acquisition by landing their ideal tenant. Here we worked together with ownership, property management, legal, architect, general contractor, tenant broker, tenant CFO, tenant operations, and tenant legal to craft a 10-year lease that includes tenant improvements to suit the tenant’s needs.
We’d love to catch up with you and brainstorm how we can make your goals come to life. You can book time with me at your convenience: https://calendly.com/industrialsmith/. Thank you!
Justin Smith, SIOR Grant LaBounty Jeannette Plumeda