Los Angeles, CA — Newmark announced that it has completed the sale of 400 National, a 290,220-square-foot single-tenant industrial distribution center located at 400 National Way in Simi Valley, California for $128 million ($441 per square foot). The property is 100% leased to an e-commerce giant and serves as a last-mile distribution facility.
Newmark Executive Managing Directors Bret Hardy, Jim Linn, Andrew Briner and Ken White and Co-Head of U.S. Capital Markets Kevin Shannon represented the seller, Greenlaw Partners, a Southern-California-based investor and developer. The buyer was a private family office investment company.
“Once again, Greenlaw executed on its unique and market-leading vision for the conversion of this former office call center facility,” said Hardy. “400 National represents an extraordinary example of a partnership between developer and user, in creating a highly-functional and truly last-mile delivery station in the burgeoning North Los Angeles submarket.”
400 National totals 290,220 square feet and is situated on a 43.55-acre parcel adjacent to one of the region’s primary highways, State Route 118. Formerly an office building, the property was extensively renovated in the last year to accommodate the tenant’s warehousing and product delivery needs, to include significant loading and van staging areas. The property was further improved by the user, which has invested significant capital into the building to create a highly functional, last-mile delivery facility.
“This sale is further evidence of the significant cap rate compression that has occurred in 2021 in the net leased space especially on sales with WALT.” said Shannon. “This compression is being lubricated by an extremely attractive debt market especially for industrial assets.”
The property is ideally situated in a central location, presenting access to a highly educated and diverse labor force with more than 1.5 million residents within a 30-mile radius of the facility.
According to Newmark Research, the Los Angeles industrial market totals 1.05 billion square feet and has the lowest industrial vacancy rate in the U.S., at 1.5% as of the second quarter. Its vacancy rate has remained below 3.0% for 37 consecutive quarters. During the second quarter of 2021, quarterly net absorption totaled 3.6 million square feet, more than double the 20-year average of 1.7 million square feet.
About Newmark
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 in excess of $2.2 billion for the trailing twelve months ending June 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
