July 15, 2019 –– In the hyper-competitive and supply-challenged Orange County industrial market, Colliers International has negotiated the $9.4 million sale of a fully leased 33,805-square-foot industrial building in the south county municipality of Lake Forest.
Colliers Executive Vice President Richard Schwartz and Vice President Joey Reaume, who normally represent mammoth properties in the Inland Empire from the brokerage firm’s Ontario, Calif. office, represented the buyer in this Orange County transaction, a private investment group based in Los Angeles. The building sold for $277 per square foot with a capitalization rate of 4.75%.
“When we found the building listed for sale, we were as surprised as anyone since industrial properties in Orange County, especially occupied buildings with long lease terms remaining in central urban infill locations like Lake Forest, are a rarity these days,” Schwartz said. “At this price and at this cap rate, it was a simple equation for our client, who when informed of the opportunity said, ‘Buy, buy, buy!’”
Built in 1997 and located at 25871 Atlantic Ocean Dr. in Lake Forest, the concrete tilt-up structure features 33,805 square feet on nearly two acres of land zoned for traditional light industrial and manufacturing use. It is occupied by an online retailer who has no plans to vacate the building, Schwartz noted.
“With a tenant who theoretically could be in the property for the next 40 years if options to extend the current lease are executed, this was an ideal investment for our client in an area where such opportunities definitely do not abound,” Schwartz added. “Finding this opportunity was the result of our team’s constant search and study of submarkets for properties to present to our investment clients.”