VITAL STATISTICS
NINE-PROPERTY COMPTON PORTFOLIO
Square Footage: 1,392,728
Deal Value: $225,578,374 (total lease consideration)
CBRE’s Tres Reid was able to successfully execute a nine-property industrial portfolio with one client, multiple landlords, and multi- ple leases. Spanning an entire city block at 1.4 million square feet, the lease consideration totaled more than $225 million. Reid leveraged his relationships with multiple landlords involved in the transaction to make all the leases coterminous – an advantageous move for the client, making it easier for them to manage their nine-property portfolio.
Using his expansive market knowledge, Reid also worked diligently to overcome the inevitable challenges of the pandemic, including its effect on logistics users across the country, the rise in interest rates, and a sub one percent building vacancy in the South Bay.
Some of the challenges that Reid and team successfully worked through during the time of the transaction were industrial rents in the South Bay – which have quadrupled since the original lease commencements – and South Bay’s industrial vacancy rate, which was at 0.5%, a record low in the region and across the US. Reid was able to overcome this by proactively engaging with the different landlords early on.
VITAL STATISTICS
THE CENTER AT NEEDHAM RANCH
21700 Needham Ranch Pkwy, Santa Clarita
Square Footage: 200,000
Deal Value: confidential
Premier West Coast alcohol and non-alcoholic beverage manufacturer DrinkPAK, LLC signed a lease expansion for 198,451 square feet, bringing its total space occupied to 770,870 square feet across four buildings at The Center at Needham Ranch industrial park in Santa Clarita. Newmark vice chairman, John DeGrinis; executive managing director Patrick DuRoss; and senior managing director Jeff Abraham, represented the tenant. The Drink- PAK campus features three state-of-the-art high-speed beverage packaging lines capable of producing up to 4,900 cans per minute. At full operation, DrinkPAK will employ approximately 200 employees at its facilities and will produce 1.9 billion cans of product per year.
VITAL STATISTICS
540-550 North Oak St., Inglewood
Square Footage: 114,357
Deal Value: $34 million
540-550 North Oak St., located in Inglewood, was the last mile warehouse near LAX, the 405 Freeway and Los Angeles Westside Markets. This industrial property that was built in 1982 offered a highly functional flex building with 35% creative office and 65% warehouse. There were two deals associated with this building address. In 2021, Avison Young represented the sale of the 114,000 square foot empty building at $48.5 million. Jonathan Larsen and Sally Zesut won the landlord representation of the assignment and in 2022, Larsen and Zesut were able to secure a long-term lease of valued at $34 million with Showtime Networks.
