Fully Occupied Building Sells for $277 Per-Square-Foot and Cap Rate of 4.75%
In the hyper-competitive and supply-challenged Orange County industrial market, Colliers International has negotiated the $9.4 million sale of a fully leased 33,805-square-foot industrial building in the south county municipality of Lake Forest.
Colliers Executive Vice President Richard Schwartz and Vice President Joey Reaume, who normally represent mammoth properties in the Inland Empire from the brokerage firm’s Ontario, Calif. office, represented the buyer in this Orange County transaction, a private investment group based in Los Angeles. The building sold for $277 per square foot with a capitalization rate of 4.75%.
“When we found the building listed for sale, we were as surprised as anyone since industrial properties in Orange County, especially occupied buildings with long lease terms remaining in central urban infill locations like Lake Forest, are a rarity these days,” Schwartz said. “At this price and at this cap rate, it was a simple equation for our client, who when informed of the opportunity said, ‘Buy, buy, buy!’”
Built in 1997 and located at 25871 Atlantic Ocean Dr. in Lake Forest, the concrete tilt-up structure features 33,805 square feet on nearly two acres of land zoned for traditional light industrial and manufacturing use. It is occupied by an online retailer who has no plans to vacate the building, Schwartz noted.
“With a tenant who theoretically could be in the property for the next 40 years if options to extend the current lease are executed, this was an ideal investment for our client in an area where such opportunities definitely do not abound,” Schwartz added. “Finding this opportunity was the result of our team’s constant search and study of submarkets for properties to present to our investment clients.”
About Colliers International
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers and LinkedIn.
Colliers Executive Vice President Richard Schwartz and Vice President Joey Reaume, who normally represent mammoth properties in the Inland Empire from the brokerage firm’s Ontario, Calif. office, represented the buyer in this Orange County transaction, a private investment group based in Los Angeles. The building sold for $277 per square foot with a capitalization rate of 4.75%.
“When we found the building listed for sale, we were as surprised as anyone since industrial properties in Orange County, especially occupied buildings with long lease terms remaining in central urban infill locations like Lake Forest, are a rarity these days,” Schwartz said. “At this price and at this cap rate, it was a simple equation for our client, who when informed of the opportunity said, ‘Buy, buy, buy!’”
Built in 1997 and located at 25871 Atlantic Ocean Dr. in Lake Forest, the concrete tilt-up structure features 33,805 square feet on nearly two acres of land zoned for traditional light industrial and manufacturing use. It is occupied by an online retailer who has no plans to vacate the building, Schwartz noted.
“With a tenant who theoretically could be in the property for the next 40 years if options to extend the current lease are executed, this was an ideal investment for our client in an area where such opportunities definitely do not abound,” Schwartz added. “Finding this opportunity was the result of our team’s constant search and study of submarkets for properties to present to our investment clients.”
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About Colliers International
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers and LinkedIn.