December 3, 2019 — Newmark Knight Frank (NKF) has completed the $34 million off-market sale of a 276,585-square-foot, fully occupied, multi-tenant industrial building located at 12752 to 12822 Monarch Street in Garden Grove, CA.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Senior Managing Director Scott Schumacher, and Executive Managing Directors Ken White, Jeff Read and Bret Hardy represented the seller, Penwood Real Estate and Western Realco. The buyer, Rexford Industrial, LLC, was self-represented.
Built in 1971 with an additional section added in 1980, the property is situated on just over 11 acres and features clear heights of 18 and 22 feet, 346 parking spaces, 14 dock-high spaces, and 11 ground-level doors. The property is well located, with immediate access to the 22 Freeway, and is near the 405 and
Shannon said, “Rexford Industrial expressed a strong interest in securing the asset off-market as it not only offered a core infill location, but additionally represents a pure value-add repositioning play, with significant future mark-to-market rent growth.”
“This asset is located within the supply constrained west Orange County submarket which has an industrial vacancy rate of just 1.6 percent, allowing for a win/win scenario on this transaction. Penwood/Western Realco realized a premium over its original purchase two years ago. At the same time, Rexford Industrial will realize the flexibility to add value to the Monarch Street property by simply re-tenanting following near-term vacancy or through executing on a redevelopment play for the site,” added Read.
With the lowest vacancy and availability rates in Orange County, the west Orange County submarket is considered one of the county’s more desirable markets due to its access to major freeways and diverse economy. Seven cities make up the submarket with Huntington Beach being the furthest west and south, Garden Grove the furthest east and, Cypress the furthest north. The industrial product types in this submarket are a combination of warehouse/distribution, manufacturing and low-rise R&D/flex space.