Acquired two industrial buildings totaling 75,000 square feet on an “off-market” basis as a sale-leaseback for 10 years to an industry leader in specialized medical equipment.  The property is located in the San Gabriel Valley submarket of Los Angeles, California, one of the strongest industrial markets in the United States.

• Purchased two industrial buildings totaling 75,081 SF in the San Gabriel Valley submarket of Los Angeles, CA, in an off-market transaction for $12.5M ($166/SF) and 6.00% cap rate in April 2021
• Acquired well below replacement cost as a sale-leaseback and 100% NNN leased for 10 years to an industry leader generating revenue of more than $50M in year of acquisition
• Located in one of the strongest submarkets in the United States (0.5% market vacancy at time of disposition and 43% rental growth over a three-year period from 2020 to 2022), Azusa Center represented an appealing, core investment profile as light industrial product that is in limited supply in the Greater Los Angeles area
• As capital markets experienced a flight to quality over multiple quarters preceding disposition, Azusa Center received unsolicited demand at a material premium to our underwritten exit values, leading to the formal “testing of the market” earlier than our initial 5-year hold
• Sold in November 2022 for $20.5M ($273/SF), which translates to a 3.83% cap rate, to an “all-cash” buyer – a 64% price premium to acquisition proforma