November 12, 2020, 10:00 AM
Newmark announces it has arranged the sale of a 112,075-square-foot industrial distribution building for $37.32 million in West Rancho Dominguez, an industrial submarket in Los Angeles’ South Bay.
Newmark’s Managing Director Ryan Plummer, Director of Buyer Services Andrey Mindirgasov, Executive Managing Director Sean Fulp and Director Mark Schuessler represented the buyer, Cohen Asset Management, Inc. The building was developed on a speculative basis by Panattoni Development Company and M. Payne Investments.
Located at 15100 South San Pedro Street, the 32-foot clear building sits on 4.54 acres and is 100 percent leased to a large, credit tenant. Built in 2019, the state-of-the-art building is strategically located near LAX and the Ports of Los Angeles and Long Beach, and allows for immediate access to the 110, 105, 405 and 91 Freeways.
“Over the past eight months, 1031 investors have focused more attention on core industrial opportunities,” said Mindirgasov. “15100 South San Pedro exemplifies such an asset that can deliver both durable cashflows and long-term upside, despite market uncertainty.”
Plummer added, “Even though industrial sales volume is down 35 percent year-over-year, Los Angeles still remains one of the most active industrial markets in the world, and there is a tremendous amount of untraditional, private capital looking to enter the fray.”
Cohen Asset Management, Inc has a long history of industrial ownership in Southern California. “High-quality infill industrial properties play an even greater role in today’s supply chain, and we are excited to add this state-of-the-art logistics property to our growing Southern California portfolio and thankful to the Newmark team for brokering the transaction,” stated Maxx Cohen, Executive Vice President of Acquisitions.
Since the beginning of the pandemic, Newmark’s Private Capital Group has closed 16 transactions totaling more than $357 million, with the majority of the buyers being comprised of private investors. Despite the volatility in the marketplace, which has sidelined many institutional investors, private capital continues to remain active and seek well-located, generational assets with industrial leading the way.
According to Newmark Research, Los Angeles County industrial vacancy has remained under 3 percent for 17 straight years as modern product remains in short supply. 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.
Founded in 1986, Panattoni Development Company, Inc. is one of the largest privately held, full-service development companies in the world. Panattoni is headquartered in Irvine, California, and operates from 28 offices in the United States, Canada and Europe. Since inception, Panattoni has developed more than 422 million square feet of space including more than 148 million square feet of build-to-suit projects. Panattoni has developed industrial, office, and flex facilities in 279 cities located in 30 states and nine countries. Learn more at www.panattoni.com.
About Newmark (Nasdaq: NMRK)
Newmark Group, Inc., together with its subsidiaries (“Newmark”), 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, we bring 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 generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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