Colliers International has brought to the demand-heavy Los Angeles County industrial market a pair of newly constructed, state-of-the-art facilities in La Verne that together total approximately 83,000 square feet. The buildings are being offered for sale or lease to a variety of potential tenants, owner-users and investors. Expected completion date for the two adjacent buildings is first quarter 2015.
With vacancies hovering in the 2 to 3 percent range, and demand far outstripping the supply of available Class A industrial buildings in both Los Angeles County specifically and in Southern California overall, the design-build firm of CEG Construction decided to take the first step in what could become a trend, according to Colliers’ Scott Heaton, who along with associate Joseph Williams, are the exclusive listing brokers.
Pico Rivera-based CEG Construction is a vertically integrated design-build industrial/commercial contracting and development firm specializing in turnkey industrial projects With in-house design and engineering, and fast-track permit processing, CEG has a reputation for delivering projects on-time and on-budget, according to Heaton. The firm is also an established trend-setter and that’s why Heaton and Williams believe this project could signal the re-emergence of a trend in industrial construction.
That trend – and what makes this project uncommon -- is breaking ground on buildings without a tenant or buyer committed to the either of the facilities. It underscores further the strength of Los Angeles County’s industrial submarkets like La Verne, which have seen unprecedented net absorption over the past 24 months and vacancy rates at near-record lows levels.
“With CEG being a design-build developer, it can affordably customize these buildings to suit just about any tenant’s specific needs,” said Heaton. “Demand for almost any industrial product has been so high over the last 18 months throughout this region that any potential user will have to look at this property as a possible site for their business – especially since it can easily become a customized project with CEG’s capabilities.”
Located at 1300 and 1306 Palomares Drive, the concrete tilt-up buildings both feature mezzanine office space along with immediate access to major surface transport routes including the Orange Freeway (SR 57), the Pomona Freeway (SR 60) and the San Bernardino Freeway (I-10). Direct access to both the ports of Los Angeles and Long Beach, and to Ontario International Airport, are additional features that could attract buyers or tenants to the site, noted Williams. The buildings also feature visibility along Arrow Highway, another selling point for tenants.
The larger of the two concrete tilt-up facilities totals 50,000 square feet on 2.29 acres. It includes 2,000 square feet of office space on a mezzanine level, 26-foot ceiling clearances, a completely secured truck court, four dock-high loading doors, one grade-level loading doors and parking for 72 automobiles. The second and smaller structure is located at 1306 Palomares Avenue and totals 33,169 square feet on 1.52 acres. It has the same amount of office space and ceiling clearances as the larger structure with three dock-high loading doors, two grade-level loading doors, a fully secured truck yard and parking for 46 automobiles.
One of the location’s most distinctive features is the extensive landscaping CEG designed into the site plan especially at the front of the buildings, noted Colliers’ Williams, who shares the listing with Heaton. This includes mature oak trees that were preserved during the construction and give the entire site a park-like environment.
“Both of these buildings are state-of-the-art facilities with the latest in construction techniques, including the use of energy-saving building materials, easy access for trucks, and locations that make them ideal for a variety of users from logistics companies to manufacturers,” added Williams. “Coupled with the fact that there is so little new industrial product on the market and you have an ideal solution for so many different types of potential users.”