The booming south Los Angeles County industrial market has provided an unexpected windfall to business owners David and Grace Tung.
The couple, who operate Concord Industries in the City of Industry, recently bought an empty warehouse building in Santa Fe Springs with the intent of renting out half the facility and moving their tape manufacturing operation to the other half. But before they could even move into the property it had appreciated so much they decided to sell it. It was purchased by the Department of Registrar-Recorder/County Clerk of Los Angeles County.
The 99,494-square-foot building at 12680-12686 Corral Place sold for $119 per square foot, which broker Mark Repstad of Binswanger/Realty Advisory Group said is likely a record sale for an industrial building in Santa Fe Springs. He cited a lack of inventory in the area as the prime reason for the price.
The sellers would not say how much they had spent to buy the property. However, "Previous comps for buildings were in the $80s to low $90s," said Repstad, who works out of Binswanger's downtown Los Angeles office and with his brother, John, represented the Tungs.
Concord is instead moving to Vernon, where the Tungs purchased an 89,740-square-foot building for $8.2 million, or about $95 per square foot, said Repstad, who also represented the couple in that purchase.
The facility at 2565 Fruitland Ave. was built in the 1990s, comparatively new for the area. Repstad said his clients got a good price, considering the 28-foot ceilings, which are uncommon in Vernon.
Clyde Stauff of the Anaheim office of Colliers International Property Consultants Inc. represented Los Angeles County in its purchase of the Santa Fe Springs building.
John McMillan, Jeff Sanita and Tom Cherry of the downtown Los Angeles office of Cushman & Wakefield Inc. represented the seller of the Vernon building, 2465 Fruitland Ave. LLC.
CB Richard Ellis Group Inc. has had a busy month. The commercial real estate services firm acquired Holley Blake, a British industrial real estate firm, for $22 million, and The Polacheck Co. of Wisconsin for $20 million.
The El Segundo company's purchase of the 10-year-old British industrial real estate firm is expected to give CB a leading position in the UK market. The company is also seeking a better foothold in Western Europe, where it already has offices in Belgium, Austria, Denmark, France, Germany, Greece, Ireland and Switzerland.
The Polacheck Co., with three offices and 117 staff members, has been a CB affiliate for 10 years and a commercial real estate company since its 1954 founding. The purchase is part of CB's initiative to purchase affiliates in key markets to extend the company's presence across the U.S.
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