August 3, 2019 — PRG Investment & Management Inc. has sold its fully occupied 53,000-square-foot Laurel Park Commerce Center in the southwest Los Angeles County municipality of Rancho Dominguez for a market record $200-per-square-foot, Colliers International and Cushman & Wakefield have reported.
“The property sold for $10.45 million, which, when you do the math, is nearly $200 a square foot, which marks the highest price per-square-foot yet paid in the South Bay submarket for a comparably sized business park,” said Colliers Executive Managing Director Michael Kendall, who is part of the brokerage firm’s Western Region Industrial Capital Markets group.
PRG acquired the property at 19500-19520 Rancho Way in September 2011 in a short sale transaction for $3.90 million ($79 per square foot). At the time of acquisition, the business park was 80% vacant and existing tenants were on month-to-month rental agreements.
“Our original business plan was to execute our PRG value-add strategy, which involved cosmetic enhancements, leasing the units to quality tenants seeking good value, and creating a stronger property cash flow,” said PRG Managing Partner Britten Shuford, a co-founder of the firm. “We were successful in quickly stabilizing the business park sooner than expected at rents which were higher than projected. Over the years, we remained focused on creating value through aggressive and focused asset management.”
The business park is currently occupied by 10 tenants in a variety of industries including biotech, international manufacturing, LED lighting, and import/export. It is located adjacent to the Dominguez Technology Center, the largest master-planned industrial business park in the South Bay.
Kendall and Gian Bruno of Colliers and Steve Bohannon of Cushman & Wakefield represented PRG in the transaction. Eric Strauss of America West Properties represented the 1031 Exchange buyer. The 3.6-acre project was originally built in 1986 by Watson Land Company.