NORWALK, Calif., September 14, 2022 – Partners Capital, an industrial real estate investment firm, has acquired Victory Industrial Park, a 75,059-square-foot industrial park in Norwalk, CA. The $16 million transaction, which closed in 35 days, includes six buildings on four acres of land at 13900 Shoemaker, 13020, 13035, 13045, 13055, and 13065 Tom White Way in Norwalk.
“There was significant interest in the property from major institutional buyers. But we were able to acquire this property at a price point that’s far below replacement cost and land value in the immediate Mid-Counties marketplace,” said Ryan Adjnasian, Senior Acquisitions Associate of Los Angeles-based Partners Capital. “Victory Industrial Park provided a distinctive opportunity to purchase a value-add industrial park located in a stabilized Los Angeles County logistics market with a vacancy rate under 1%.”
Adjnasian said new development of this type of asset class is not planned in the region and he expects further growth in rents into the foreseeable future. “Our intentions are to harvest favorable cash flow in the immediate term by converting below market rents to market, while securing longer-term leases,” said Adjnasian, noting that this acquisition further validates Partners Capital’s ability to utilize its proprietary sourcing capabilities to source off-market acquisitions in a supply constrained submarket such as Mid-Counties.
The property, which currently has an occupancy rate of 100%, had undergone significant renovations in the prior four years, and Partners Capital plans to complete minor cosmetic upgrades, which will increase marketability to drive occupancy and facilitate the roll-up of below-market rents to market rates on renewals and re-leasing. Partners Capital plans to retain the property as a legacy asset in its portfolio under a long-term hold strategy.
Mark Blumenthal, Senior Vice President of Partners Capital said, “Victory Industrial Park is another example our of firms’ ability to source high-quality, irreplaceable assets at below replacement cost pricing. Our business model and niche focus on incubator industrial continue to make us the go-to investor for brokers across Southern California for these types of assets.”
Cushman & Wakefield’s Lars Platt and Don Yahn represented the private seller, Cheryl Simpson. Partners Capital was self-represented in the acquisition.
This transaction represents the 10th multi-tenant industrial park that Partners Capital has acquired in Southern California in the past 36 months. Partners Capital has been aggressively seeking similar product types within metro areas across the Western United States. Partners Capital focuses on multi-tenant industrial incubator assets, 3PL industrial facilities, flex buildings, as well as truck and container yards. The firm has built a portfolio of 20 assets totaling 1 million square feet of space across three key Western states.
Since 2009, Partners Capital, a privately-owned real estate firm, has stressed value creation as its cornerstone. This successful platform directly invests and co-invests in value-add real estate with institutions, high net worth individuals, family offices and trusts.
