COMMERCE, CA - A four-property, 254,000-square-foot industrial portfolio in Commerce has traded hands in a transaction orchestrated by commercial real estate services firm Cushman & Wakefield. Erwin & Essie Appel Trust sold the Class A assets on 61st and Randolph streets to KTR Capital Partners.
Mike Sidney, Mike Foley, John McMillan and Jeff Sanita of Cushman & Wakefield's Los Angeles South Bay office, and Jeff Chiate and Jeff Cole of the firm's Orange County office handled the off-market disposition. According to Sidney, the offering drew significant interest from the investment community.
"The City of Commerce is an infill market with a significant inventory of older industrial buildings," he said. "This portfolio features high-quality, modern product, which positioned it as an unusual and desirable opportunity."
The four properties - including 5560 and 5564 East 61st Street, 5636 East 61st Street, 5650 and 5668 61st Street, and 5603 Randolph Street - are 85 percent leased to six tenants. "The Greater Los Angeles submarket currently is tied with neighboring Orange County for having the lowest industrial vacancy rate in the nation, at just 4.4 percent," Sidney noted. "KTR Capital Partners will undoubtedly capitalize on the region's high demand to lease up the remaining available space and further increase the portfolio's NOI."
Cushman & Wakefield's industrial brokerage platform provides global resources and local expertise for tenant and landlord representation, disposition and acquisition services, transaction management, and industrial consulting including labor and demographic analysis. In 2012, in the U.S. alone, this group completed more than 7,000 industrial real estate transactions - totaling 261 million square feet - with an aggregate value in excess of $8.43 billion.