San Fernando Valley Industrial Building Sells at 80% Profit
By Nick Trombola July 22, 2024 4:30 pm
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If California’s San Fernando Valley isn’t careful, it could become better known for its industrial market rather than as the home of celebrities like the Kardashians, Drake and Will Smith.
That’s especially true if properties in the Valley keep selling at high profits. A partnership among Center Capital Partners, Authentic Capital Group and TPG Angelo Gordon has purchased a 150,000-square-foot, fully-leased industrial building in Chatsworth — a suburban neighborhood in the northernmost reaches of the city of Los Angeles — for $41.5 million, or roughly 80 percent more than seller NBP Capital paid for it seven years ago, according to property records. Mark Esses and Keith Kleinman of California Realty Group represented NBP in the deal.
NBP Capital, a Portland, Ore.-based investment firm, bought the asset at 9401 De Soto Avenue from Rexford Industrial Realty for $23 million in 2017.
CBRE (CBRE) National Partners’ Michael Longo, Barbara Perrier and Bennett Robinson represented the buyers of the property, which is currently fully leased to two tenants. One of those tenants is manufacturer Align Aerospace.
“It’s rare to see 30-foot clear buildings trade in the San Fernando Valley,” Longo said in a statement. “Given the limited new supply, we believe this property offers a high-quality, low-risk investment, with strong in-place cash flow and immediate upside to capture income as leases roll over.”
Greater San Fernando Valley currently has the lowest overall industrial vacancy rate of all the Los Angeles-area submarkets at 1.6 percent, as well as the lowest availability rate at 3 percent, according to a recent quarterly market analysis by CBRE. It also has among the highest average asking rates at $1.60 per square foot.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
