GARDENA, Calif., Aug. 02, 2017 (GLOBE NEWSWIRE) -- Institutional quality, Class-A industrial property in the South Bay rarely comes to market and when it does, buyers are willing to pay a premium for it.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/4b26bba5-4d90-4b8b-a322-61b33b50941c
Case in point: Storm Properties Inc. opportunistically sold its newly developed Storm Fujimoto Industrial Center in Gardena for $217 per square foot and a 3.7% estimated stabilized cap rate, pricing unimaginable only 12 months prior, according to Alan Kwan, director of acquisitions of the Torrance-based company.
Storm Properties is a leading developer, owner, and manager of industrial and commercial properties.
“Institutional buyers are driving up pricing for such properties as the industrial asset class is becoming more attractive and the South Bay submarket is the hottest and most desirable in the nation,” Kwan said.
“We received tremendous interest from institutional buyers nationwide,” said Kwan. “We want to thank Darla Longo, Michael Kendall, and the entire institutional properties group of CBRE for representing both buyer and seller in this transaction.”
Headquartered in San Francisco, the buyer, Terreno Realty Corporation (NYSE:TRNO), paid $24.7 million for the 114,061 square-foot, Class-A industrial building on 5.5 acres. The firm acquires, owns and operates industrial real estate in six major coastal U.S markets: Los Angeles; Northern New Jersey/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore.
Completed in 2016, the facility is located at a 15913 Main Street, approximately one-half mile from the I-110 freeway and less than one mile from the SR-91 freeway, affording easy access to the Ports of Los Angeles and Long Beach. It is fully leased to Exquisite Apparel, which specializes in licensed apparel and loungewear.
Storm Properties currently manages a diverse portfolio of industrial and retail properties, and is targeting significant growth through further acquisitions. Its efforts are focused on core-plus to value-add retail and industrial properties in the $5-million to $30-million range in major Western metro markets. Additionally, Storm is seeking additional land opportunities for residential entitlement and commercial/industrial development.
Storm Properties, Inc. is a subsidiary of Torrance-based Storm Industries, Inc., an innovative and entrepreneurial organization with a growing family of companies. Over its 83-year history, Storm Industries, Inc. has evolved from a single brass foundry in Los Angeles to a highly diversified group of businesses operating across the globe.
For more information, contact Alan Kwan, director of acquisitions, at (310) 986-2432, or via email at akwan@storm-properties.com. Also, visit the website at www.storm-properties.com.