Prologis Snaps Up OC Industrial Property for $55M
- Apr 25, 2018
Global logistics real estate owner Prologis Inc. is expanding its industrial holdings in California, picking up a fully leased warehouse and distribution building in Foothill Ranch, Calif., from Institutional Advisor for $55.4 million.
The 307,781-square-foot building at 50 Icon in the Orange County community is currently 100 percent leased by Hampton Products International. The firm, which develops and manufactures locks, residential hardware, lighting and security products, has been in the building for 14 years and has a lease that expires in 2023. The structure could eventually be divided into separate 158,000-square-foot and 149,000-square-foot units. The property features 30-foot clearance, ESFR sprinkler, 45 dock-high doors for loading, 471 parking stalls and a 36,630-square-foot office space.
Darla Longo, Barbara Perrier, Brett Hartzell and Rebecca Perlmutter Finkel with CBRE’s National Partners West Coast team represented the seller. CBRE’s Gregg Haly served as local market representative.
“50 Icon was a unique opportunity to acquire a state-of-the-art industrial building that is easily divisible, which provides the new owner with the opportunity for rent increases and market flexibility down the line,” Perrier said in a prepared statement. “This site is an incredible last-mile location as it has immediate access to major population hubs via the transportation arteries in the region.”
Orange County’s industrial market remains strong with solid demand and an overall 1.5 percent vacancy rate in the first quarter of 2018, according to CBRE research. The demand and lack of supply pushed lease rates up 1.1 percent since the fourth quarter of 2017 and 3.5 percent year-over-year. There were no development starts in the first quarter and only one new 170,000-square-foot building was completed, according to CBRE’s Orange County Industrial MarketView Q1 2018 report.
The Orange County acquisition comes three months after Prologis and joint venture partner Norges Bank Real Estate Management paid $64.6 million for a 357,000-square-foot industrial facility in South San Francisco in northern California. Prologis’ 55 percent share cost the REIT $35.5 million. As of Dec. 31, Prologis owned or had investments in properties or development projects totaling about 684 million square feet in 19 countries.
Meanwhile, CBRE National Partners and the CBRE Industrial & Logistics team in Denver represented the seller earlier this month in a 3.8 million-square-foot, four-state industrial portfolio transaction. CBRE’s client, The PAULS Corp., sold industrial properties in cities including Denver, Dallas, Las Vegas and Atlanta to Clarion Partners. Tenants included United Parcel Service Inc., Simmons and Whirlpool.
Image courtesy of CBRE