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1/21/19
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A 22.5k sf, multi-tenant industrial building in North Hollywood sold for $5 mil, or $222/sf. We’re told that the property, located at 7525 Ethel Ave, received so many offers that some bidders had to be turned away and the property sold over asking price.
The building sits on a 90.8k sf parcel (2.1 acres) in a gated business park with an ideal, central San Fernando Valley location and easy access to the 170 Fwy. The excess land offers an additional 30k sf of development potential.
Constructed in 1973, the property units are equipped with office build-outs in the front and warehouse or storage space and a ground level loading door in back. The property includes 2.88 per 1,000 parking and some of the units are fully air-conditioned.
Scott Caswell and Erica Balin with Lee & Associates-LA North/Ventura represented the seller, Ethel Investment Group LP, in the deal. The buyer, Ethel Management Group LLC, was repped by Yair Haimoff SIOR at Spectrum Commercial Real Estate Inc.
“This was a rare, fully-leased multi-tenant investment that offered substantial upside potential, and we priced it based upon a pro-forma cap rate of 5 percent,” Caswell said. “But when the call for offers closed we had 23, and bidders were still coming forward. Once the best and final offers were submitted, we saw that the market believed this property offered ample opportunity, even with a lower cap rate.”
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