Los Angeles – May 5, 2021 – CBRE has arranged the sale of Gardena Business Park, a 42,385-square-foot multi-tenant industrial building in Gardena, Calif., to a Beverly Hills, Calif.-based private investor for $9.03 million.
CBRE’s Kevin Foley, Mark Shaffer, Anthony DeLorenzo, Gary Stache, Doug Mack, Bryan Johnson represented the seller, Wedgewood, a local real estate investment firm.
“Multi-tenant industrial continues to attract some of the most aggressive capital from private investors,” said Foley. “In this case, the buyer was in a 1031-exchange and had 10 days remaining to identify a replacement property.”
Located at 13200-13228 S. Western Ave., Gardena Business Park features 23 units ranging from 1,000 to 4,635 square feet. The property is 100 percent leased to a mix of 17 tenants, whose longstanding occupancy at the project averages 11.58 years.
“We are finding that many of the highest bidders on multi-tenant industrial product are folks that recently sold apartment buildings in California due to the regulations and recent challenges from the COVID-19 pandemic,” said Foley. “These private investors particularly like that the risk is spread out among several tenants—similar to apartments—and that the units require little to no capital to backfill if somebody vacates.”
Gardena Business Park is situated in the South Bay trade region of Los Angeles, 10 miles south of downtown Los Angeles. The property is blocks from the I-110 and I-105 freeways and within a 10-minute drive of Los Angeles International Airport and 20-minute drive of the Ports of Los Angeles and Long Beach.
The South Bay industrial submarket is a top investment market in the U.S., according to CBRE Research. CBRE Economic Advisors forecasts industrial rents in Los Angeles County will increase 41 percent through 2025, approximately 7 percent annually.
