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7/30/19
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A 1031 exchange investor paid $10.45 mil for Laurel Park Commerce Center, a fully occupied, 53k sf ($197/sf) business park in Rancho Dominguez, within southwest L.A. County. The property was sold by PRG Investment & Management Inc. We’re told the deal set a record for the highest price per-square-foot for a comparably sized business park in the South Bay submarket.
PRG acquired the property, located at 19500-19520 Rancho Way, in September 2011 in a short sale transaction for $3.9 mil ($79/sf). At the time of acquisition, the business park was 80% vacant and existing tenants were on month-to-month rental agreements. The 3.6-acre project was originally built in 1986 by Watson Land Company.
The project is currently occupied by 10 tenants in a variety of industries including biotech, international manufacturing, LED lighting, and import/export. It is located adjacent to the Dominguez Technology Center, the largest master-planned industrial business park in the South Bay.
Kendall and Gian Bruno of Colliers and Steve Bohannon of Cushman & Wakefield represented PRG in the transaction. Eric Strauss of America West Properties repped the buyer.
“Our original business plan was to execute our PRG value-add strategy, which involved cosmetic enhancements, leasing the units to quality tenants seeking good value, and creating a stronger property cash flow,” said PRG Managing Partner Britten Shuford, a co-founder of the firm. “We were successful in quickly stabilizing the business park sooner than expected at rents which were higher than projected.”
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