December 18, 2018— DAUM Commercial Real Estate Services has directed the trade of a 60,040 square-foot industrial building in the Los Angeles County submarket of Compton, California on behalf of both the seller, Hot Chocolate, Inc., an apparel distributor, and the buyer, Terreno Realty Corporation, a San Francisco-based public real estate investment trust.
Casey Mungo, an Executive Vice President at DAUM’s Mid-Counties office, Matthew Boggs, Vice President of DAUM’s Los Angeles office, and Alex Nagel, Associate Vice President at DAUM’s Los Angeles office, directed the transaction for a total consideration of $11.1 million.
“With this acquisition, we assisted the buyer in securing a unique opportunity to strategically upgrade a well-located property to meet the growing demand of industrial users in the region, and benefit from the increased average asking rents,” explains Nagel. “Prior to bringing the asset to market for lease, the buyer is completing extensive renovations and equipping the property with in-demand industrial amenities, including energy efficient lighting and a complete cosmetic makeover.”
Nagel also notes that the Los Angeles submarket has seen industrial vacancy rates remain unchanged at a tight 2.3-percent, according to a recent DAUM Commercial Q3 industrial report, due to sustained high demand and a lack of inventory.
“This transaction was also a win for the seller, who brought the property to market in conjunction with its desire to relocate to another property that better fit its business needs,” continues Nagel. “Through our strategic marketing efforts, we were able to garner interest from multiple buyers and ultimately secured an offer $20 per-square-foot higher than recent industrial sales in the area. This directly reflects the continued unmet demand for industrial property in the region and decreasing availability for assets of this size.”
DAUM Commercial has also been retained by the buyer to market the property for lease to a high-credit tenant.
The asset offers competitive features including a fenced and private yard, 26’ clear height ceilings, six dock-high doors, and 4,900 square feet of office space.
Located at 1100 West Walnut Street in Compton, California, the property also provides immediate access to the 91, 710, and 110 freeways, providing ease of access throughout the region.