FULLERTON, Calif., Dec. 6, 2016 - A core-plus, multi-tenant North Orange County industrial asset has traded hands in a sale orchestrated by commercial real estate services firm Cushman & Wakefield. Rexford Industrial Realty acquired Fullerton South Business Park in Fullerton from EverWest Real Estate Partners. The five-building, 361,372-square-foot property is 100 percent occupied.
Industrial specialists Jeff Chiate, Rick Ellison, Randy Ellison, Jeff Cole and Mike Adey, based in Cushman & Wakefield's Irvine, Calif., office, represented the seller and procured the buyer in the transaction.
Located at 1600 E. Orangethorpe and 1335-1375 S. Acacia, the nearly 18-acre Fullerton South Business Park is leased to eight tenants with a balanced rollover schedule. It features approximately 2.2 acres of excess land for future development or additional parking capacity, flexible multi-tenant designs and dock-high and ground level loading. With street frontage along Orangethorpe Avenue, the property offers immediate access to the Orange (SR-57) and Riverside (SR-91) freeways. It is located approximately 26 miles from the Port of Los Angeles.
"Coupling the institutional quality of the asset with excellent market fundamentals, Fullerton South Business Park is positioned for superior tenant retention and increased rental rate growth," Chiate said. "The lease for the current tenant in the 1600 E. Orangethorpe building excludes a 30,033-square-foot office area, which creates a value-add opportunity upon lease expiration."
Chiate noted that the buyer could choose to create a distinctive, progressive office space. "An extensive outdoor common area provides an enhancement opportunity to create a unique, fully functional indoor/outdoor work environment and achieve a significant increase in rental rates and value," he said.
Alternately, the removal of the office appendage in 1600 E. Orangethorpe would enable a substantial increase in the total number of loading positions and trailer parking, which would garner a higher rental rate for the building. Additionally, the excess land offers options including continued income stream from leasing it as yard storage or the creation of additional parking, including trailer parking for the 1600 E. Orangethorpe building.
"In short, Rexford Industrial has taken advantage of a rare opportunity to acquire a sizable, institutional-quality, value-add Southern California industrial asset," Chiate said. "Given the infill nature of the site, there are very few opportunities for competitive developments."
With strong tenant demand, limited availabilities and rising rental rates, Fullerton has become one of Orange County's most desirable industrial markets, according to Chiate. The North Orange County submarket led the Orange County industrial market through the first three quarters of 2016 with over 3.3 million square feet of leasing activity coupled with over 1 million square feet of net absorption. The submarket also has one of the lowest vacancy rates in the county, at less than 2 percent, according to Cushman & Wakefield's latest market reports.
Cushman & Wakefield's industrial brokerage platform provides global resources and local expertise for tenant and landlord representation, disposition and acquisition services, transaction management, and industrial consulting including labor and demographic analysis. In 2016 globally, this group completed more than 4,799 industrial lease and sale transactions, including Capital Markets transactions, totaling nearly 185.8 million square feet with an aggregate value in excess of $6.2 billion.
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About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
About Rexford Industrial
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 135 properties with approximately 14.8 million rentable square feet and manages an additional 19 properties with approximately 1.2 million rentable square feet. For additional information, visit www.rexfordindustrial.com.
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