Los Angeles – Oct. 26, 2016 – CBRE Group, Inc. announced the sale of the new Anaheim Concourse industrial property in one of Southern California’s most sought-after infill locations to Bentall Kennedy for $188. 2 million.
CBRE’s Darla Longo, Barbara Emmons, Michael Kendall, Rebecca Perlmutter alongside local market experts Brad Bierbaum and Ryan Peterson represented the sellers, Panattoni Development Co, and Clarion Partners LLC on behalf of a separate account managed by the firm. Val Achtemeier of CBRE arranged financing for the project on behalf of Bentall Kennedy.
The 965,255 square foot property located on North Miller Street in Anaheim, California, which was completed last year, consists of seven Class A industrial buildings that are 86 percent leased. The lease rollover is staggered with the first one expiring in January 2021 and less than 20 percent of the project’s square footage to roll in any given year through 2026.
"This acquisition offered the opportunity to secure almost 10% of the Class A industrial product in the largest industrial market in Orange County in a single transaction,” said Bentall Kennedy’s Ashley Powell, Head of Transactions for the Western region. “Orange County is at a historically low vacancy rate and is enjoying strong tenant demand. Bentall Kennedy is thrilled to acquire Anaheim Concourse on behalf of one of its separate account clients."
The Anaheim Concourse sits in one of the most-desired infill markets in the Greater Los Angles and Southern California market with overall industrial vacancies at 1.8 percent. The economic makeup in the area is diverse and includes demand from the aerospace, electronics, food and apparel industries.
“Tenant demand in the Orange County industrial market remains strong, and we expect availability to remain within the 4 percent range over the next12 months,” said Emmons.
“Development activity is comparatively low and does not bring a sufficient amount of industrial space to the market. So high-end product like this is highly sought after.”
Demand in the area for industrial facilities has far outstripped supply. One 367,000 square foot building was completed in the first quarter of this year and another 219,000 square foot site is currently under construction and expected to be finished in the fourth quarter. The activity totals less than 1 percent of the industrial base.
“Serving as the gateway between the Orange and Los Angeles Counties, this market is an integral part of Southern California’s dynamic economy,” said Kendall. “And with the increasing necessity for same-day deliveries, particularly for e-commerce companies, being located close to major consumer hubs is integral to success today.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About Clarion Partners, LLC
Clarion Partners, an SEC registered investment adviser, FCA authorized manager and FINRA member firm, has been a leading U.S. real estate investment manager for more than 34 years. Headquartered in New York, the firm has offices in Atlanta, Boston, Dallas, London, Los Angeles, São Paulo, Seattle and Washington, DC. With more than $42 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its more than 200 domestic and international institutional investors. More information about the firm is available at www.clarionpartners.com.
