CEG Construction Buys 5-Acre Industrial Site in Arcadia for $10.5M
C.E.G. Construction, part of Pico Rivera-based industrial real estate developer Chalmers Equity Group, has shelled out $10.5 million for a nearly five-acre industrial site in Arcadia, according to CBRE, which represented both parties in the transaction.
The 4.95-acre site at 11621-11633 Clark Street in the San Gabriel Valley includes approximately 31,400 square feet of office and industrial space across four multi-tenant buildings and three acres of paved and secured yard area.
CBRE’s Anthony DeLorenzo, Mark Shaffer, Gary Stache and Doug Mack represented C.E.G, and the seller, Grey Light.
“Demand for industrial properties is at an all-time high with incredible interest from developers, [real estate investment trusts] and 1031-exchange investors,” DeLorenzo said in a release about the 11621-11633 Clark Street sale. “The unique property size is a big advantage given the limited supply of industrial-zoned land in the San Gabriel Valley.”
Despite a partially gloomy take on market research published by CoStar Group earlier this week, which showed that net absorption in the L.A. industrial market was slightly negative for the second consecutive quarter, and cited rising concerns about potential trade wars, demand for industrial space in San Gabriel Valley remains high.
Colliers International’s second-quarter report on the San Gabriel region’s industrial market found that vacancy remained the tightest among all other major greater Los Angeles industrial markets at just 0.5 percent. Average asking rents increased $0.02 per square foot triple-net to $0.72, the highest-ever for San Gabriel, and expected to continue climbing given limited inventory. The upward trend, Colliers found, was the primary reason tenants in San Gabriel Valley increasingly choose to own their properties; they want to be insulated from fluctuating market conditions.
“The San Gabriel Valley is an ideal area for companies that want to offer employees a quality lifestyle without sacrificing business and logistical needs,” Shaffer said in prepared remarks. “This area attracts big-box, distribution-type tenants, as well as small- to mid-sized entrepreneurial manufacturers.”
Another recent transaction in the area included the sale of a 47,300-square-foot industrial property at 387 Aerojet Avenue in Azusa from PGIM Real Estate to Pacific Best for $17.2 million according to public records.