Los Angeles – May 11, 2016 – CBRE Group, Inc. announced the ground breaking of a new industrial and office development by AEW Capital Management, L.P. and Sheridan Ebbert Development on a 13-acre site in Valencia, California.
The development is part of the largest master-planned industrial project and center for business technology and industry in Los Angeles County. The ownership group named MCA Gateway V, LLC had purchased the four lots from Gateway V, LLC in April of this year. CBRE’s Craig Peters and Doug Sonderegger represented both sides of this transaction and are now listing the to-be-constructed buildings.
Three state-of-the-art industrial buildings will be constructed, offering dock high loading, 28 feet clearance, upgraded ESFR fire sprinklers and 480/277 volt power. The Class A buildings will be offered for lease or sale. Building sizes will be 105,047 square feet, 88,752 square feet and 60,923 square feet. Completion of the structures is expected to be in the first quarter 2017.
The CBRE team previously had sold two adjacent lots on 11.89 acres last year to Logix Federal Credit Union and an additional 5 acre lot to Hancock Parkway Properties, LLC.
“This site is close to the most important freeways in the county,” said Peters. “It allows easy access to all the major submarkets in the area, including the San Fernando Valley, Burbank Airport, Downtown Los Angeles, West Los Angeles and the Ports of Los Angeles/Long Beach.”
The Greater Los Angeles area industrial market has seen record low availability levels while demand is ever-increasing, likely pushing rents up 6 percent by year-end, according to CBRE’s first-quarter research report. The region is going to see some relief from supply constraints as more than 3.8 million square feet are currently under construction, with the South Bay and San Gabriel Valley accounting for the majority of the total.
“This area is in dire need of new industrial product,” said Peters. “These facilities will be state of the art and will fulfill the ever-increasing need for space by companies in our primary industry clusters of aerospace & defense, entertainment and e-commerce.”
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 (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
