(EDITOR’S NOTE: According to public records, the properties were sold for a combined price of $263 million, or about $309 per square foot.)
CBRE brokered the sale of an industrial portfolio totaling 851,131 sq. ft. in Los Angeles County and Orange County.
CBRE National Partners represented the seller. The buyer was DRA Advisors in partnership with George Urban Advisors and Five Horizons Partners.
The portfolio included a total of 45 buildings in Los Angeles and Orange County, ranging in size from 7,580 sq. ft. to 31,918 sq. ft. The properties were originally acquired by Link Logistics/Blackstone in July 2022 as part of its $7.6 billion purchase of PS Business Parks, Inc. (“PSB”).
“The portfolio offered DRA the ability to acquire a large scale of properties across multiple markets in the highly entrepreneurial Southern California market. Small bay industrial, with smaller suites, strong tenant retention, and a low cost of operation is gaining favor with investors,” said Mike Longo, Senior Vice President at CBRE. “The typically shorter-term leases allow the landlord to adjust rents more quickly to market. It’s the apartments of industrial real estate, except with a lack of new supply and high barriers to entry.”
The Los Angeles portfolio includes five properties – four in Signal Hill and one in La Mirada – with 17 buildings totaling 237,184 sq. ft. (12.7 acres). At the time of sale, the portfolio was 98% leased to 119 diverse tenants. With an industrial base of over 1 billion sq. ft., Los Angeles is considered one of the country’s most desirable industrial markets. The South Bay submarket boasts one of the highest asking rents in the Greater Los Angeles area at $1.41 per sq. ft., with no signs of deceleration due to its proximity to the ports of LA and Long Beach as well as LAX and Long Beach Airports.
The Orange County portfolio – located at the intersection of the I-5 and I-405 freeways, in the infill industrial market of South Orange County –includes two multitenant industrial parks with 28 buildings totaling 613,947 sq. ft. (37.58 acres) in the city of Laguna Hills. The properties, known as The Row and Plaza del Lago, are adjacent to the region’s most desirable executive housing communities, with strong neighboring labor and consumer demographics. The buildings are currently 98% leased to 103 tenants across a diverse range of industries and uses. In addition, the underling zoning for Plaza Del Lago is mixed-use, which allows for high density residential and commercial uses.
Each of the properties are located at: 3283-3299 Walnut Ave., 2698 Junipero Ave., 2300 Walnut Ave., and 2700 Rose Ave. in Signal Hill; 14747 Artesia Blvd. in La Mirada; and 23251-23501 Avenida de la Carlota, 23452-23641 Ridge Route Dr., 23501-23562 Commerce Center Dr., 23001 and 23015 Del Lago Dr., and 23052 Lake Forest Dr. in Laguna Hills.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
