240,000 SF of Industrial Space Sold in Southern California
- Jun 09, 2008
Despite a market with slowing momentum, Los Angeles-based commercial real estate developer Overton Moore Properties has sold three industrial buildings at the Pacific Gateway Business Center in Seal Beach, Calif., for $38.8 million. The buildings total 240,000 square feet. The buyers are Affliction Clothing, Jerry Turpanjian (Amonix) and Magtek. These deals bring the occupancy of the development to six of 10 buildings sold, representing 450,000 square feet of the project’s total 831,000 square feet of space committed. Brokers in the deal said the building sales are the result of a project goal of offering corporate, industrial for-sale product to healthy, fast-growing companies looking to capitalize on a central location in a master-planned environment. Additionally, the project is the first master-planned for sale development of its size in the greater LA infill region. Pacific Gateway Business Center (pictured) is an equal distance from Orange County and Los Angeles, proximate to the ports of Los Angeles and Long Beach, and accessible to and from the 405 Freeway. “There are the tangibles that make the park attractive, like the business park environment, access to ports and the freeway as well as the proximity to Los Angeles and Orange County, but the main reason is that there are very few buildings of this quality offered on a for-sale basis,” Timur Tecimer, president & COO of Overton Moore Properties, told CPN. “It was built entirely on a speculative basis. We have four buildings left and we [are seeing] good activity on three of those. It helps to have a 45-acre project with 10 buildings already constructed, so people know how they look,” Tecimer added. The industrial market in Los Angeles County seemed to fair well in the first quarter in 2008 with a vacancy rate pushed up by both new construction and businesses vacating space increasing one basis point to 1.6 percent while asking rates held steady at $0.61 triple net, according to a first quarter report by Grubb & Ellis Co. for the first quarter. Net absorption was positive with 1.5 million square feet absorbed this quarter but the level of absorption compared to the previous quarter was lower by roughly 300,000 square feet. Perhaps the most interesting story for this quarter was the decline in sale and lease activity, according to the report. Activity decreased by approximately 1.7 million square feet for a total of 7.3 million square feet, marking its first significant decline in over five quarters. This decrease in activity is a combination of a lack of product as well as overall hesitation about the current and future state of the market, the report stated. John Schumaker, senior vice president of CB Richard Ellis Inc., and Brian DeRevere, senior vice president of CBRE, are part of the team marketing the Pacific Gateway Business Center. The team also includes Ryan Peterson, Jeff Morgan and Bob Goodmanson. Additional owners at Pacific Gateway Business Center include F&M Bank, Original Parts Group and Carlin Enterprises. Ranked among the top two real estate developers in Los Angeles County by the Los Angeles Business Journal, Overton Moore Properties is a privately held company specializing in real estate development, acquisition, master planning, marketing, asset management, property management, construction management, and financial reporting of industrial, office and mixed-use projects.