(EDITOR’S NOTE: According to public property records, the property was sold by an entity that shares an address with Clarion Partners for $64 million, or about $248 per square foot.)
WESTMINSTER, Calif. –– Cushman & Wakefield announced the firm has brokered the sale of a freestanding industrial distribution building totaling ±258,506 square feet (sf) in Westminster (Orange County), California. Located at 7400 Hazard Ave, the building is situated on ±11.82 acres and was approximately 72.6% leased during the time of sale providing the buyer a variety of value-add strategies via lease-up and mark-to-market.
The property was acquired by a Real Estate fund managed by Ares Management (the “buyer” or “Ares”), a leading global alternative investment manager.
Jeff Chiate, Jeffrey Cole, Rick Ellison, and Matt Leupold of Cushman & Wakefield’s National Industrial Advisory Group—West represented the seller in the transaction. The firm’s Randy Ellison and Kyle McGillen provided leasing advisory and were also retained by the buyer to continue leading Project Leasing for the asset.
Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance (EDSF) team of Rob Rubano, Brian Share, Max Schafer, and Becca Tse worked with Ares’ debt capital markets team in securing financing for the acquisition.
“This is an institutional quality industrial asset with a superior infill location combined with desirable distribution features and functionality. The buyer has an exceptional mark-to-market opportunity whereby leasing the existing vacant unit, with support from the Cushman & Wakefield leasing team, to realize meaningful growth in operating cash flows,” said Jeff Chiate, Executive Vice Chair.
“Orange County remains one of the most desired industrial markets in the US due to its proximity to the Ports of Los Angeles and Long Beach and several millions of consumers, along with its exceptional access to labor and Southern California’s robust freeway network,” added Senior Director Randy Ellison.
7400 Hazard boasts ideal industrial features including 22’-24’ clear heights, ample dock-high and grade-level loading, abundant auto parking, and 40 off-dock trailer parking stalls providing optimal leasing optionality to prospective occupiers.
According to Cushman & Wakefield’s latest market report, the Orange County Industrial market closed 2023 with a vacancy rate of 2.7%, representing the tightest market in Southern California. The West County submarket, where the property is located, boasts a healthy 3.2% vacancy and contributed to the Orange County industrial market benefiting from a variety of prospective occupiers outside of standard distribution tenants.
