Newmark has completed the sale of 340 Fischer Avenue in Costa Mesa. The single-tenant 31,424-square-foot flex industrial building is fully leased to Toyoto Racing Division.
Newmark’s Executive Managing Director Robert E. Griffith represented the seller Janez Properties, Inc. in the $6.82 million transaction to the buyer, a 1031 tax deferred exchange. The sale achieved a 3.5 percent cap rate.
“We had 10 offers with four at the asking price, underscoring the intense investor demand for Orange County industrial properties,” said Griffith. According to Griffith, the Orange County industrial market has an overall 2 percent vacancy factor and this Costa Mesa submarket is at 1 percent.
“Due to a lack of supply, lease rates continue to increase dramatically. Capital is pursuing industrial product aggressively which is demonstrated in the 3.5 percent cap rate we were able to achieve for this property. Looking ahead, we see no signs of this continued price appreciation changing any time in the near future. Right now there is more capital chasing industrial product than there is supply.”
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”) (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
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