“The quality and unit mix of the asset, along with the lack of inventory, contributed to the record-breaking price,” said Blake Rogers, who represented the seller with Albert Shilton of Charles Dunn Co.’s Century City office.

Built in 2005, the 8,000-square-foot property is 100 percent occupied. The units are all townhomes with two bedrooms, two-and-a-half baths and private rooftop sun decks. Monthly rates range from $1,800 to $2,100.

The buyer is acquiring the building as part of a 1031 exchange, which allows investors to avoid paying capital gains taxes if they use a real estate proceeds to invest in a similar building within six months. The L.A. investment group pulled its equity from a Texas property to close on this deal. It was represented by Simon Halff at Centennial Real Estate.

Insulation Expansion

Insul-Therm International Inc. is relocating and expanding its Southern California offices in Commerce.

The Sacramento company, which manufactures and distributes insulation products for industrial and commercial customers, signed a seven-year lease to occupy all of the 47,500 square feet at 6655 E. 26th St. The deal with landlord Los Angeles Board of Adjusters, a private real estate company, is valued at about $1.6 million, a 40 percent cut from the company’s current square-foot rent.

With the relocation, Insul-Therm is expanding from 30,000 square feet at 6333 Corsair St., also in Commerce.

David Fults, a senior vice president at Voit Real Estate Services in Los Angeles who represented the tenant, said that the soft Commerce market allowed for the lower lease rate.

Brian McLoughlin, a senior vice president at Voit, also represented the tenant. The landlord was represented by Jeff Sanita, John McMillian and Tim Wallace of Cushman & Wakefield Inc.

Staff reporter Jacquelyn Ryan can be reached at jryan@labusinessjournal.com or (323) 549-5225, ext. 228.

Next

For reprint and licensing requests for this article, CLICK HERE.