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Must Close in 2021
 

Classic Auction - Industrial

Los Angeles Value-Add Industrial in Top-Performing Submarket

245-261 E 157th Street, Gardena, CA 90248

  • Asset Type
  • Real Estate
  • Property Type
  • Industrial
  • Land Area
  • 2.86 Acres
  • Year Built
  • 1962
  • Number of Floors
  • 1
  • Number of Buildings
  • 1
  • Occupancy
  • 77.00%
  • Occupancy as of
  • Nov 01, 2021
  • Industrial Type
  • Warehouse
  • Property Size
  • 70,546 Sq Ft
  • Ceiling Height
  • 22 Ft

Los Angeles Industrial with Value-Add Upside

Investment Highlights 

  • Huge Value-Add Opportunity: The largest tenant at the property vacated at the end of October leaving the project 77% leased. A new owner will be able to quickly backfill the space and stabilize the property.
  • Below Market Rents: Average in-place rents are more than 30% below market, including the largest tenant at the property that is approximately 50% below market.
  • Extremely Tight Submarket: The South Bay is the #1 industrial submarket in Los Angeles and currently boasts a vacancy rate of just 2.1%.
  • Motivated Seller / Attractive Basis: The seller is motivated to transact by year-end, and the property is expected to trade at an extremely attractive basis compared to similar properties in the area.



Offering Details 
 

Newmark and RI Marketplace are pleased to present the opportunity to acquire the fee-simple interest in 245-261 E 157th Street in Gardena, California (the “Property”). The offering consists of a 77% leased, 70,546-square-foot, multi-tenant, industrial project located in the highly sought-after South Bay area of Los Angeles. The Gardena submarket continues to be extremely tight and boasted a 2.1% vacancy rate as of Q3 2021.

The Property consists of two concrete-tilt industrial buildings that total 70,546 square feet and are situated on a 2.86-acre parcel. The buildings are extremely functional and feature 19’ to 22’ clear heights with 15 ground level doors and two dock-high doors. The project features above average parking at a ratio of 2.3/1,000 SF, and the largest tenant at the property is 50% below market, presenting a huge amount of upside at lease expiration.

The offering presents an extremely rare, value-add opportunity for an investor to acquire a well-located, infill, industrial deal with huge upside that can be achieved by leasing up the in-place vacancy and rolling tenants to market upon lease expiration, with in-place rents more than 30% below market. The property is expected to trade at an extremely attractive basis compared to similar product that has been selling in the mid $200 per-square-foot range, with user sales climbing closer to $300/SF.

Disclaimer: The information being provided herein is for informational purposes only. No representation or warranty is made as to the accuracy or completeness of any information contained herein, including, without limitation, any information regarding the condition of the Property, the condition of title or Property descriptions.

Any documents and/or pictures posted herein or elsewhere on the RealINSIGHT Marketplace, (the "Website") are for informational purposes only, and may not represent the current condition of the Property or the condition of the Property at the time of sale. The posting of pictures herein or elsewhere on the Website does not constitute a guarantee that any items represented in the pictures will be present when the buyer takes possession of the Property.

You are encouraged to conduct your own due diligence and investigate all matters relating to the Property. It is recommended that you seek independent advice, including legal advice, to perform your due diligence and that you use good faith efforts in determining that the content of all information provided to or obtained by you is accurate.

Platform Fee

The platform fee for this transaction is the greater of 5.00% or a minimum of $25,000.

Need Help?

Have questions about Marketplace? You can reach us at 800.915.7015 or info@rimarketplace.com.

Auctioneer

  • Emilio Lemeni

    c/o Fisher Auction Company Inc.

    License: 00961384