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9/15/22
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Partners Capital has acquired Victory Industrial Park, a 75k sf industrial park in Norwalk, for $16 mil ($213/sf). The asset consists of six buildings on four acres of land at 13900 Shoemaker, and 13020, 13035, 13045, 13055, and 13065 Tom White Way, north of Rosecrans Ave and east of I-5.
The property, which currently has an occupancy rate of 100%, had undergone significant renovations in the prior four years. Partners Capital plans to complete minor cosmetic upgrades, which will increase marketability to drive occupancy and facilitate the roll-up of below-market rents to market rates on renewals and re-leasing. The firm intends to retain the property as a legacy asset in its portfolio under a long-term hold strategy.
“There was significant interest in the property from major institutional buyers. But we were able to acquire this property at a price point that’s far below replacement cost and land value in the immediate Mid-Counties marketplace,” said Ryan Adjnasian, Senior Acquisitions Associate of Los Angeles-based Partners Capital. “Victory Industrial Park provided a distinctive opportunity to purchase a value-add industrial park located in a stabilized Los Angeles County logistics market with a vacancy rate under 1%.”
Adjnasian said new development of this type of asset class is not planned in the region and he expects further growth in rents into the foreseeable future. “Our intentions are to harvest favorable cash flow in the immediate term by converting below market rents to market, while securing longer-term leases,” said Adjnasian.
Cushman & Wakefield’s Lars Platt and Don Yahn represented the private seller, Cheryl Simpson. Partners Capital was self-represented in the transaction, which closed in 35 days.
This transaction represents the 10th multi-tenant industrial park that Partners Capital has acquired in Southern California in the past 36 months. The firm has built a portfolio of 20 assets totaling 1 million square feet of space across three key Western states.
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