Vacant SoCal Industrial Properties Trade for $88M

The seller is STAG Industrial and property deed records show that the buyer is tied to Chicago-based private equity firm Walton Street Capital.

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Two vacant industrial buildings in Southern California have traded hands for $88 million. 

SEE ALSO: DC Apartments Change Hands in $5M Deal

The properties total about 733,820 square feet in the city of Camarillo in Ventura County, about 10 miles west of Los Angeles County. The 425,039-square-foot building at 3175 Mission Oaks Boulevard traded for $53.4 million. The site at 3001 Mission Oaks Boulevard includes 308,780 square feet and traded for $34.6 million.

Property deed records show that the buyer is tied to Chicago-based private equity firm Walton Street Capital. The previous tenant, Deckers Brands footwear and apparel, vacated the buildings last year, according to Newmark Knight Frank’s (NKF) John DeGrinis, who helped represent STAG in the trade.

The seller, STAG Industrial, a REIT based in Boston, purchased the two properties for $54.5 million in 2014. STAG, which invests in single-tenant industrial properties, was represented by NKF’s DeGrinis, Patrick DuRoss and Jeff Abraham. NKF declined to share additional information or confirm the buyers. 

The new owner has a future tenant in tow, DeGrinis said. He declined to share the tenant name or when the lease will close.

DeGrinis said the properties are ideal for a last-mile, third-party logistics, or an e-commerce-related tenant. In an email to Commercial Observer, he said STAG did some rehabilitation to the buildings after Deckers left last year, “and had plans for much more work, but the sale transaction presented itself before actual work could commence.”

DuRoss added that NKF marketed the properties to tenants and brokers throughout the L.A. region “knowing that a project of this size is difficult to find anywhere in the basin.”

“We had multiple offers on the buildings from distribution-related companies due to the property’s modern delivery features that are becoming increasingly difficult to find in the North L.A. market, which carries a 1.6 percent vacancy rate,” DuRoss said in a statement.

In April 2019, Walton Street Capital was part of a joint venture with Ocean West Capital Partners that sold two office properties in Beverly Hills to investment firm Breevast for a total of $154 million.

The NKF execs, along with the firm’s Kevin Shannon, Jim Linn, Bret Hardy and Andrew Briner, also represented the buyer.