I spent the morning with my team selecting our favorite new properties for sale and preparing the comps for the last 90 days. More has come to the market and sold than most people are aware of. It’s good to know that the industrial markets are still moving.
The top new warehouse properties for sale within the last 90 days are:
- 6817 E Acco St, Commerce – 107,467 SF for sale at $205 / $22,030,000. I like this offering because you can go single or multi-tenant with it. The loading isn’t perfect but it is good enough to be attractive to tenants and could be improved by going further into the warehouse with truck wells.
- 6300 Chalet Dr, Commerce – 27,930 SF for sale at $199 PSF / $5,570,000. 4 dock 18′ clear front loader. This is a bread and butter smaller deal that could be bought at a discount and leased out and then sold to a user further down the road.
- 5701 Fresca Dr, La Palma – 72,900 SF for sale and pricing is estimated to be around $192 PSF / $14,000,000. Ton’s of trailer parking for a medium-sized building. At 18′ clear, this is an ideal opportunity to raise the roof and then occupy or to spin it back out for a user sale.
- 13940 Maryton Ave / 14109 Pontlavoy Ave, Santa Fe Springs – 12,272 SF & 9,345 SF for sale and pricing is TBD. These are two smaller user buildings that are being sold leased. The play here is to buy them at a discount because they are leased at a low rate and to continue leasing them until it is time to sell them to a user. There aren’t too many clean ones like these in Mid Counties for that matter.
- 3601 W Pendleton, Santa Ana – 25,400 SF for sale for $250 PSF / $6,350,000. Small building with docks and abundant fenced yard space is hard to come by. That will keep this leased and functional for years.
You can see the whole survey of 47 properties as you need.
The top 10 sale comps in the last 90 days that provide insight into where the market is heading:
- 1055 Sandhill Ave, Carson – 158,595 SF sold for $58 PSF of LAND VALUE. This was an old food plant sold by General Mills to Rexford for them to build more nice new industrial product.
- 6687 Flotilla St, Commerce – 120,000 SF sold for $175 PSF / $21,000,000. Family Trust sale to Rexford of fully leased, with under market lease rate.
- 2001 E Dominguez St, Long Beach – 306,313 SF sold for $158 PSF / $48,421,139. This is part of a two buildings sale-leaseback with Western Tube & Conduit. These sale-leasebacks are very popular in today’s environment. I can help you structure one of these for your company or find these to invest in.
- 8155 Byron Rd, Whittier – 32,000 SF sold for $171 PSF / $5,500,000. This was a “distressed” sale to an owner/user. 8 offers on the property based on the pricing. Could they have gotten more if they had the time?
- 655 Tamarack, Brea – 38,439 SF sold for $240 PSF / $9,225,500. User sale.
- 12751 Monarch St, Garden Grove – 20,387 SF sold for $227 PSF / $4,628,000. User sale. We have another building like this that is twice the size coming available soon in Garden Grove.
- 335 Fischer Ave, Costa Mesa – 34,094 SF sold for $237 PSF / $8,100,000. Not exactly arm’s length from what I understand as this was part of the business sale and they delayed the property sale.
- 2206 Alton Parkway, Irvine – 30,600 SF sold for $258 PSF / $7,904,000. B. Braun bought this from their landlord as part of their capital investment program and IV fluid infrastructure.
- 17401 Eastman St, Irvine – 43,109 SF sold for $240 PSF / $10,346,000. Edwards Science buys another building in the neighborhood. We have received multiple offers from them and can facilitate their underwriting of your property as you require.
What is your property worth and why? We’re happy to share our underwriting with you and help you think through the lease or sale of your property.
Prologis has been putting out tons of great information as they track the acceleration of economic, the changes in the supply chain due to the pandemic, customers’ inventory levels, and re-shoring initiatives. Here is their latest article on how this will change our industrial markets.
Industrial Advisor Insights
My assistant and I have been creating content to help warehouse executives think through how to get from their old building into their new building, how to think through lease renewals, and how to kick off a relocation project. You can find it on our website. If you find any article that resonates with you, have questions on, or further insight into, please share it with me so I can keep improving on them to help more business leaders make great industrial real estate decisions.
Justin Smith SIOR
MBA MRED MCR
Senior Vice President / Principal
Lee & Associates / Irvine
Corporate ID 0104791 / License ID 01504494
9838 Research Dr.
Irvine CA 92618