December 23, 2020 9:00 AM
Newmark announces it has arranged the sale of a four-building cold storage and food processing portfolio totaling 290,368 square feet in Los Angeles, CA.
Newmark’s Executive Managing Directors Bret Hardy, Jim Linn and Andrew Briner, Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman John McMillan and Senior Managing Directors Scott Schumacher and Jeff Sanita with cooperation from Scott Delphey, founder of Food Properties Group, represented the seller, Dedeaux Properties. The undisclosed buyer is a global real estate services company.
“There is very limited supply of cold storage facilities in the in-fill markets servicing an industry fueled by growing demand for natural and organic foods and rising consumer preference for online groceries,” said Linn. “This has created outsized future rental growth for well-located, food-related buildings.”
The portfolio is comprised of four net-leased assets located at 4000 Noakes Street, Commerce, and 3425, 3435 and 3501 E. Vernon Avenue, Vernon, each ranging in size from 38,000 to 111,000 square feet. Each building was 100 percent leased at the time of sale to a diverse mix of food processing, cold storage and ready-to-serve meal delivery-oriented tenants.
“The assets are all located in what is arguably the ground zero location for food processing and distribution facilities in Los Angeles, one of the strongest submarkets of its kind in the U.S.,” said Dedeaux Principal Brett Dedeaux. “During our hold period, these assets more than exceeded our business plan and with a huge supply/demand imbalance for large scale food processing and cold storage facilities, it was a good to time sell. The portfolio’s location combined with the resiliency and strength of the industrial real estate segment, particularly for last mile cold storage, provide the buyer with excellent potential for very attractive risk-adjusted returns going forward.”
The portfolio’s central location presents easy access to primary Southern California markets including Los Angeles, Orange County, Inland Empire and San Diego County.
Los Angeles is arguably one of the most resilient industrial markets in the country as it services a consumer population of nearly 18 million throughout the five-county greater Los Angeles metropolitan area. According to Newmark Research, Central Los Angeles’ industrial market boasts strong market fundamentals with 72 consecutive quarters of sub-three percent vacancy and a current vacancy rate of two percent.
About Newmark (Nasdaq: NMRK)
Newmark Group, Inc., together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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