Daum Commercial Real Estate Services’ Dennis Sandoval and Kevin Sandoval represented the seller in the transaction.
“The seller had a well-located asset with strong potential for upside based on existing undermarket rental rates and opportunities to modernize the property through strategic upgrades,” Dennis Sandoval said in a statement.
The property is 95% leased to multiple tenants, which he said would provide cash flow for the buyer right away.
“The buyer is an opportunistic investor who knows the product type and location well, in addition to understanding the process and capital expenditure required to renovate this asset in order to maximize its value in the current market,” Dennis Sandoval said in a statement.
The buyer plans to start value-add renovations, which are expected to be good for the area as a whole.
“Not only was this a win-win deal for both the buyer and the seller, but this transaction and business plan will benefit the local community,” Kevin Sandoval said in a statement. “The buyer’s physical upgrades and cosmetic improvements will help attract quality tenants and enhance the overall look of the area. The city of Pomona was extremely pleased to see this sale come to a close, especially since this business park is located directly across (from) the recently expanded Western University of Health Sciences.”
The industrial market has been in high demand in L.A. During the third quarter of the year, the vacancy rate was 1.5%, down from 3.6% the previous year, according to data from Jones Lang LaSalle Inc.
During the quarter, 14.6 million square feet of industrial space sold or leased, up from 13.7 million square feet the previous year, according to JLL data.
