Newmark announces it has arranged the sale of a two-building industrial park, totaling 140,837 square feet, for $22.05 million in Sylmar, an industrial submarket north of Los Angeles.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Sean Fulp, Bret Hardy and Jim Linn and Managing Director Ryan Plummer represented the sellers, Oaktree Capital Management, L.P. and Intertex Companies, who managed the funds. The buyer, Rexford Industrial Realty, was self-represented.
Located at 12744 San Fernando Road, the property stretches across 6.48 acres and was 56 percent leased to two tenants at the time of sale. Primed for redevelopment, the property is well-suited to accommodate an approximately 145,000square-foot building for last mile distribution.
“The covered land play redevelopment opportunity attracted a wide range of capital from owner/users to developers,” said Fulp.
Plummer added, “The East San Fernando Valley market is ideally suited for last mile distribution, and it has been starved for new, modern industrial product. The desire to deliver that product was evident on this disposition.”
Situated at the confluence of the I-5, I-405 and I-210 Freeways, 45 miles from the Port of Long Beach and Los Angeles, 30 miles from the Los Angeles International Airport, the property is strategically located to meet the growing last mile demand within Los Angeles.
Los Angeles County industrial vacancy has remained under 3 percent for 17 straight years as modern product remains in short supply, according to Newmark Research. Q3 sales volume was highly pronounced and well beyond the market’s 10-year average. Average asking rents ended the third quarter of 2020 at $0.89 per square foot NNN, an increase of 2.3 percent from $0.87 in the third quarter of 2019; today’s rent is at a record high.
About Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc. is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology and industry expertise, Newmark brings ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark Group, Inc. generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements About Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.