Los Angeles – Sept. 12, 2016 – CBRE Group, Inc. announced the completion of an industrial building sale in City of Industry, California, to the AFL-CIO Building Investment Trust for approximately $29 million. CBRE Group sold the building on behalf of an affiliated of Newport Beach, California-based CT Realty Partners. It is one of the largest such deals in the San Gabriel Valley this year.
AFL-CIO, which was advised by PNC Realty Investors, Inc., purchased the property at a 4.45 percent, year 1 cap rate. CBRE’s Barbara Emmons and Darla Longo facilitated the sale.
The property, located at 13110 Louden Lane, is approximately 168,000 square feet and sits in the middle of the San Gabriel Valley, one of the regions’ premier infill markets. The building is 100 percent leased to a publicly traded (NYSE) e-commerce company, through October 2021.
The tenant chose the site due to its proximity to the Greater Los Angeles area’s infrastructure and large Southern California consumer base. The building is a brand-new construction, which is particularly attractive to e-commerce users, and sits in an extremely dense infill market with predominantly older buildings. The property has easy access to the area’s main freeways, including the 605, the 10 and the 60.
“There is significant demand for this type of property given the lack of available space in the San Gabriel Valley submarket,” said Emmons. “The need for industrial space is greatly driven by the ever-incresing importance of e-commerce, especially in major logistical markets. Demand for these types of properties will only go up.”
With more consumers purchasing online, the e-commerce boom in Southern California continues to influence the commercial real estate landscape, principally the industrial and retail markets, according to the latest CBRE research. Major e-commerce players continue to fortify their competitive advantage by increasing their fulfilment presence and bolstering their online presence through technological acquisitions.
The increase in demand from e-commerce related activity in 2016 has resulted in more than
21.7 million square feet of occupancy gains in the region. This year, e-commerce related demand accounts for 37 percent of total activity. For transactions of more than 100,000 square feet, e-commerce/e-fulfilment related deals account for an even larger portion at 57 percent.
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.
