(EDITOR’S NOTE: In Southern California, the properties are located at 7190 Jurupa Avenue in Riverside, 15272 Bear Valley Road in Victorville, 35780 Date Palm Drive in Cathedral City, 2500 Sweetwater Springs and 3500-3600 Wilson Road in Bakersfield.)
Los Angeles, CA — Newmark announces it has completed the $520 million sale of an eight-asset, 1.16 million-square-foot industrial portfolio 100 percent triple net leased to Amazon and located in cities across California and Utah.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Alex Foshay, Executive Managing Directors Ken White, Andrew Briner, Bret Hardy, Jim Linn and Greg Galusha represented the undisclosed seller, a family office investor, in the sale of the California properties. Newmark’s White represented the seller in the sale of Utah assets. The buyer was Mirae Asset Global Investments. Newmark Vice Chairman David Milestone and Senior Managing Director Brett Green arranged the acquisition financing on behalf of the buyer.
“This portfolio provides immediate scale in the warehouse distribution market, which is seeing record-breaking fundamentals” said Shannon. “This portfolio was sold off market, which in the industrial sector, is a rare opportunity for the buyer.”
The portfolio totals eight buildings, with six having closed and the remaining two set to close in the next quarter. The six assets that recently closed include a 94,495-square-foot facility in Bakersfield, California; a 111,725-square-foot facility in Riverside, California; a 126,395-square-foot facility in Victorville, California; a 122,156-square-foot facility in Cathedral City, California; a 146,914-square-foot facility in American Fork, Utah and a 201,096-square-foot facility in North Salt Lake City, Utah. The properties benefit from ideal fundamentals for Amazon’s last-mile distribution facilities, including proximity to ground and air transit and to population centers.
Industrial remains the top-performing property type in U.S. commercial real estate in terms of total returns and rental growth, according to Newmark Research. This has propelled investment volume up 50% year-over-year to $33.9 billion during the first quarter of 2022. Bidding for well-located distribution and warehouse product has put upward pressure on pricing, with major market pricing reaching a record $333 per square foot. Given the high levels of rental growth in recent years and high inflation, a pricing premium is often achieved on industrial properties with lower lease terms remaining so that investors can more quickly mark-to-market rents and boost returns.
