Williams-Sonoma Inc. will move into a 230,000-square-foot building at Majestic Realty Co.'s Grand Crossing industrial park Feb. 1, completing its transition into the site.
In July, Williams-Sonoma moved into a 950,000-square-foot building at the industrial park, where it has signed a 10-year lease for 1.18 million square feet. It will move into the new space Feb. 1.
As the 6.45 million-square-foot Grand Crossing development nears completion with just a handful more buildings slated to be built Kent Valley of Majestic said that the City of Industry market is strong despite a softening of the industrial market in the Inland Empire. Majestic is headquartered in the City of Industry.
"We haven't felt it. The City of Industry has become a hub for port-oriented shippers," said Valley, who represented both sides of the Williams-Sonoma deal.
Financial terms of the deal were not disclosed, but Valley said the asking price at Grand Crossing for larger buildings is 45 cents per foot per month on a triple net basis, requiring the tenants to pay the taxes, insurance and maintenance. The asking price for smaller buildings is 60 cents to 65 cents per foot per month, triple net.
"We got near our asking price," Valley said. Other tenants at Grand Crossing include Jakks Pacific Inc., Home Depot Inc. and Poundex Associates Corp.
The vacancy rate for industrial space in the third quarter in the San Gabriel Valley was 1.9 percent, up from 1.1 percent a year earlier. The average asking rent was 53 cents per foot per month triple net, according to Grubb & Ellis Co.
Hank Darnell of Majestic also represented both sides of the deal.
An eight-unit apartment building in Beverly Hills has changed hands for $458,000 per unit the highest price paid for such a property in the city.
Dr. Ronald Karlsberg, who practices cardiology and internal medicine in Beverly Hills, paid $3.66 million for the 245 N. Almont Drive building. The seller was the Omansky family. The Dec. 28 deal was the first time the 11,640-square-foot building traded hands since the Omanskys built the apartments in 1963.
"It was really a record-breaking deal," said Brent Sprenkle, the Sperry Van Ness broker who represented the seller. "It was the children of the developer that had held the property for 45 years."
In addition to a 2,500-square-foot penthouse, the average unit size is 1,100 square feet, which is large for a rental building. It is fully occupied, and protected by Beverly Hills' rent control ordinance, which allows for a 10 percent annual increase. The seller raised rents during the 90-day escrow period, with rents now ranging from $1,350 to $3,500 per month.
The asking price on the property was $3.75 million and it went on the market in August.
"We had offers within a week," said Sprenkle, who added that while it sold for below asking price, the deal shows that "people will still pay top dollar for plus, plus real estate."
Michael Balson of Miller & Desatnik Realty Corp. represented the buyer.
Two lease deals have been completed at Pacific Pointe, a 12-story, Class A office building in Gardena. The deals with Del-Jen Inc., a subsidiary of Fluor Corp., and Temcor, had a total consideration of $4.5 million.
The 879 W. 190th St. property is owned by Transwestern Investment Co. LLC, a Chicago-based investment and asset management firm that is loosely affiliated with commercial real estate services company Transwestern.
As a result of the deals, the property is now 96 percent leased, up from about 85 percent when Transwestern Investment bought the building in fall 2006.
Temcor, which builds architectural and environmental enclosures signed a five-year deal for about 14,000 square feet. Rammy Rasmussen of Grubb & Ellis represented Temcor.
Del-Jen, a U.S. government contractor, signed a seven-year deal for about 11,000 square feet. Mike Harry of CB Richard Ellis Group Inc. represented Del-Jen.
The per-square-foot, per-month rental rates for both leases start at about $2.35 and escalate up. Both deals closed in November.
Transwestern's Bob Pearson and Kevin Housman represented the landlord in the deals.
Staff reporter Daniel Miller can be reached at firstname.lastname@example.org or (323) 549-5225, ext. 263.
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