January 31, 2023 9:00 AM
Newmark announces the sale of 5555 Broadway Street, an 89,000-square-foot industrial building in American Canyon, California. The asset sold for an undisclosed amount. Newmark Director Kris Hagar and Managing Director Tyler Epting represented the buyer, Intersection, in the transaction.
5555 Broadway Street is a temperature-controlled warehouse with night-air cooling system, ideal for beverage storage and distribution. Situated on approximately 7.04 acres of land, the property features five grade-level doors, eight dock-high doors including four with levelers, 18- to 23-foot warehouse clearance and approximately 9,000 square feet of office space. The property offers an excess three acres for additional outdoor storage space.
“5555 Broadway’s unique divisibility and excess land make it capable of accommodating a variety of size/use requirements, offering the buyer an excellent value-add purchase opportunity,” said Hagar.
“The property has maintained a long history of high occupancy,” said Anton Myskiw, Associate at Intersection. “Current occupancy is 98%, with a diverse mix of tenants paying rents that are approximately 34% below market. Near-term lease expirations provide us with an opportunity to re-lease building and yard space at market rents during the first year of ownership.”
Intersection also plans to make strategic capital improvements to the property including new exterior paint, signage, landscaping, parking lot resurfacing and improvements to the back-yard area, namely fencing and lighting. 5555 Broadway Street is situated directly along CA State Route-29 providing excellent visibility and convenient truck access.
The national industrial market has remained resilient despite recent economic and geopolitical headwinds, according to Newmark Research. For the fifth consecutive quarter, national industrial absorption topped 100 million square feet. The persistent imbalance between demand and new deliveries has pushed vacancy down to 3.7%, likely a cyclical low. Demand remains strong for industrial space with absorption continuing to outpace deliveries. Over the coming quarters, the deficit between net absorption and deliveries is likely to tighten and reverse as consumer demand softens and construction deliveries rise, given the record-high construction pipeline.
 Dba Newmark Knight Frank in California
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately $3.1 billion for the twelve months ending September 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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