CapRock Partners, a California-based industrial real estate investment and development firm, has sold a 97,000-square-foot industrial warehouse in Commerce, Calif.
CapRock Partners acquired the property in November 2017 in an off-market transaction complementary to the firm’s value-add investment strategy. After a short hold, and strong interest from its long-term tenant, CapRock Partners sold the building and 4.32-acre property to the packaging solutions supplier who has occupied the property for several years, for an undisclosed amount.
“This transaction was a win for both buyer and seller,” said Jon Pharris, co-founder and president, CapRock Partners. “Given that the property is located in arguably the country’s tightest industrial market and has unique amenities such as rail spurs and I-710 Freeway frontage, we were confident we could unlock intrinsic value in the real estate. Thus, after acquiring the asset, our team unearthed an opportunity to provide a mutually beneficial solution to the current tenant.”
The warehouse is located at 5331 and 5333 Slauson Avenue in Commerce, one of California’s strongest industrial submarkets. Wedged between I-710 and I-5 and intertwined with intermodal thruways, Commerce is an integral logistics hub for global manufacturers and transportation businesses. This submarket saw record-high occupancy in 2018, with CBRE reporting vacancy of 1.1 percent in the fourth quarter, and over 15 percent year-over-year rent growth. The property’s location is accessible to prime transportation routes, which lead directly to the ports of Los Angeles and Long Beach, in addition to nearby rail and air transportation.
“With little developable land, the Commerce property enabled CapRock to unlock value for the right owner-user,” added Patrick Daniels, CEO, CapRock Partners. “With only a year remaining in the lease agreement, our current tenant proved to be the perfect candidate for the property’s intended use. Our team is pleased to have completed a transaction that benefited all parties involved.”