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| Chris Migliori |
La Habra, CA – DAUM Commercial Real Estate Services recently completed the lease of an 8.67-acre land parcel located in the city of La Habra in North Orange County, California on behalf of the lessor, West Harbor Capital, a Torrance, California-based private equity firm which focuses exclusively on the investment and asset management of industrial properties throughout Southern California.
DAUM also helped the owner acquire the land earlier this year.
West Harbor Capital is currently working through the horizontal development of the site as part of this last-mile facility for the new tenant, a major national courier company, according to Chris Migliori, an Executive Vice President at DAUM’s Newport Beach office, who completed the lease alongside Paul Gingrich, also a DAUM Executive Vice President.
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| Paul Gingrich |
“The strength of our Client’s investment in this land and repositioning strategy was quickly realized when interest from this large credit tenant was secured before the acquisition was even finalized,” says Migliori.
“Through identifying the opportunity for West Harbor Capital to purchase this rare parcel when we did, the firm was able to add this well-located asset to their portfolio.
"With e-commerce last-mile distribution demand continuing to place upwards pressure on prices and rental rates, West Harbor’s strategic acquisition will allow them to see the upside almost immediately.”
The tenant will benefit from close proximity to freeways including State Routes 57, 91, 60, and Interstate 5. Migliori notes that the site is located in the tight North Orange County submarket, with vacancies remaining in the 3-percent-range despite an influx of new product.
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| Eric Ruehle (left) and Adam Deierling |
According to Adam Deierling, a Managing Partner of West Harbor Capital along with Eric Ruehle, the company leveraged a long-term relationship with the tenant’s broker in order to ultimately secure the lease.
Deierling adds: “We understood the unique nature of this property and leveraged our existing relationships to immediately find the ideal user for this asset.
"Collaborating with this tenant, we are creating a cutting-edge distribution facility in one of the tightest infill markets in Southern California.
"Once repositioned, this asset will be a one-of-a kind last mile facility that will provide the market with a look into the future of the e-commerce business while providing our investors a remarkable property-level returns.”
"Once repositioned, this asset will be a one-of-a kind last mile facility that will provide the market with a look into the future of the e-commerce business while providing our investors a remarkable property-level returns.”
Migliori notes that with the influx of vertical development, offering primarily horizontal development with build-to-suit opportunities with convenient access to population centers can be increasingly attractive to accommodate today’s courier and distribution tenants.
The land parcel is located at 551-555 South Harbor Boulevard in La Habra, California. The site is expected to be ready for occupancy by the first quarter of 2020.
Contacts:
Elisabeth Manville / Jenn Quader
(949) 438-6262
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