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| Michael Collins |
RANCHO DOMINGUEZ, CA – DAUM Commercial Real Estate Services has completed the 10-year lease of
a recently-renovated 104,339 square-foot industrial building in the South Los
Angeles County submarket of Rancho Dominguez, California on behalf of the
lessor, Industrial Property Trust (IPT), according to Michael Collins,
Vice Chairman of DAUM Commercial and Manager of the firm’s South Bay office.
Collins represented IPT, a
REIT operated by Denver-based real estate investment firm Black Creek Group,
along with Jordan Lara, a First Vice President at DAUM’s South Bay
office, and part of the LARA Team. The new tenant, Apex International, a global
supply chain solutions provider, is relocating and expanding from a nearby
34,500 square-foot facility.
“The lease to Apex
International continues to prove the strength of this investment for our
Client,” explains Collins. “The Los Angeles West/South
industrial submarket posted a steady sub-two-percent vacancy rate in Q4 of last
year, and asking rents have increased nearly 10 percent over the past year.
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| Jordan Lara |
"Based on our long-term relationship with the lessor
and experience in the South LA region’s industrial market, we were able to
identify and secure an ideal, high-quality tenant concurrently with the completion
of our Client’s $2.5 million in capital improvements to optimize the building
for today’s industrial users.”
DAUM directed the acquisition
of the property to IPT in January 2017 for $12 million. The asset is currently
valued near $20 million, according to Collins.
“With this lease, the tenant
has the opportunity to occupy a modernized industrial building in close
proximity to the Ports of Los Angeles and Long Beach,” continues Collins.
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| Steve Young |
DAUM worked under the
direction of Steve Young, an Asset Manager at Black Creek Group, to
negotiate with the tenant to ensure a successful lease transaction, notes
Collins.
The recent renovations to the
building included the demolition of a portion of the building to expand the
truck court, addition of dock-high loading doors, and the construction of
10,000 square-feet of new two-story office space, which replaced outdated
offices, according to Young.
The asset also features warehouse clearance up to 26 feet, a secure fenced yard, and a calculated sprinkler system throughout. The location of the property provides direct access to I-710 and I-405.
The asset also features warehouse clearance up to 26 feet, a secure fenced yard, and a calculated sprinkler system throughout. The location of the property provides direct access to I-710 and I-405.
The total consideration of the
lease is approximately $10.5 million, and it is scheduled to commence on May 1.
Frank Shen of Realty Advisors represented Apex International as the
lessee in this transaction.
The property is located at
18554 South Susana Road in Rancho Dominguez, California.
For more information, please contact:
Lindsay Mackay / Elisabeth Manville
(949) 955-7940
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