LOS ANGELES, Calif., September 14, 2021 – Cushman & Wakefield announced today the firm has brokered the investment sale of a 10.8-acre site containing six, leased industrial/flex buildings totaling 261,950 square feet of improvements in Gardena, California. Located at 1600 W 135th St, the property is situated within Los Angeles’ South Bay submarket and is currently fully leased to an undisclosed aerospace tenant.
The asset was acquired by Overton Moore Properties for approximately $35.1 million. The seller was SGL Global. A capital markets team led by Mike Condon Jr. and his partners Erica Finck, Bailey Dawson, Brittany Winn, and McKenna Gaskill with Cushman & Wakefield represented the seller.
Following the closing, Overton Moore Properties will be marketing the entire existing 261,950-sf facility for lease, an assignment being led by Condon, Winn and Gaskill. Pending the outcome of that leasing effort, the new ownership may aspire to process entitlements for the new development of two, modern Class A industrial manufacturing buildings of approximately 200,000 sf and 42,000 sf, which would supplant the existing structures on the site.
Mike Condon Jr, Vice Chairman said, “The sale of the Gardena campus shows the continued and insatiable appetite from investors to acquire large scale, infill industrial sites, most specifically in the South Bay submarket. Overton Moore’s proven track record of success in developing complicated sites in the city of Gardena was in the end what won them the day and we are thrilled at another full cycle of deals consisting of land acquisition, leasing, and eventual disposition with their team.”
Condon Jr. continued, “The other interesting component to this deal is what the end user profile might look like. At the outset of the marketing process our team predicted a full scrape and redevelopment of the site to modern industrial. But through the process, OMP took notice of an emerging trend towards production (the Los Angeles version of life science) and an influx of R&D tech tenants that can potentially reuse the existing high bay and bow truss improvements. We are excited at the opportunity to chase a few unique users before pivoting the leasing focus to more traditional industrial users and the in-place lease affords us some time to be creative in our pursuit of a unicorn tenant.”
Currently containing six small and mid-size industrial/flex buildings of approximately 63,007 sf, 53,579 sf, 53,215 sf, 49,895 sf, 23,936 sf, and 13,317 sf on a single location, the site provides a very unique offering given the fact the buildings are primarily composed of 45’ – 55’ clear heights, column free, fully HVAC’d buildings that can accommodate a production user or another R&D / flex manufacturer and corporate offices.
“Like many other heavy manufacturing sites throughout California, the Gardena property came with its fair share of challenges. Nevertheless, we had countless qualified buyers vying for the opportunity to get their hands on a 10.8-acre site in one of the hottest industrial submarkets in the Country,” said Erica Finck, Director. “There continues to be an incredible amount of dry powder chasing well located industrial sites, and it has caused a paradigm shift in investors’ risk tolerance for some of these more complicated manufacturing properties. OMP was able to navigate the diligence and closing process with speed and professionalism. We’re very pleased to have executed this transaction with them, on behalf of SGL Global.”
The property is conveniently accessible to the Los Angeles freeway network, including within minutes of the Interstate 110 and 105 interchange and proximate to Highway 91/Artesia Blvd and Interstate 405. It is also well positioned near the Ports of Los Angeles and Long Beach. There are also several retail, entertainment and recreation amenities either walkable or within a short drive.